The British Independent Retail Association (Bira) has called on the Chancellor to urgently reconsider business rates relief following new figures showing sharp job losses in the retail sector.
Official data from HMRC reveals that employment in wholesale and retail fell by 1.7% in December 2025, with 72,000 fewer people employed compared to the same period in 2024. The sector also saw vacancy levels drop by 3.5% in Q4 compared to Q3, and 6.2% year on year.
Andrew Goodacre, CEO of the British Independent Retailers Association (Bira), said the figures exposed the “flawed thinking” behind the government’s decision to focus business rates relief solely on the hospitality sector, saying: “Whilst these may look like small percentage numbers, we should remember that retail and wholesale employs 4.2 million people, accounting for 13.9% of all payrolled workers. This compares to 2.1 million in hospitality. Retail is nearly twice the size as an employer.
“These figures show once again the vital importance of retail as an employer and the stress that is clear to see across the sector. They also highlight the flawed thinking by the Chancellor to only support pubs with extra business rates relief.
“If we genuinely care about employment, especially of younger people, retail can play a much bigger role, but it also needs help to reduce the business rates burden. The government cannot continue to ignore the sector that employs over four million people whilst directing support to much smaller industries.
“Independent retailers are facing a perfect storm of rising costs, high business rates, and falling consumer confidence. These job losses are a direct consequence of government policy that fails to recognise retail’s central role in employment and local economies.
“We continue to call for meaningful business rates reform that supports all retailers, not just selective sectors. The high street matters, and the people who work there matter too.”
The ONS data showed that wholesale and retail experienced the largest decrease of any sector between December 2024 and December 2025, whilst median pay growth in retail was 5.9%, the highest of any sector, adding further pressure on businesses already struggling with rising costs.
Bira members are discussing the “unfairness” of the rates relief for pubs, with none for retailers, on the Bira members forum.
