Minimum wage is killing local retailers

The minimum wage is having a negative impact on local retailers according to a definitive report into the health of the British high street released by the British Shops and Stores Association (bssa). The organisation is warning that above inflation rises to the National Minimum Wage since its inception in 1999 have driven up staff costs by more than many high street retailers can now afford.

The report, entitled 'Health of the High Street', calls for decisive action from the government to ensure the UK's high streets continue to survive and prosper in the 21st century, including a full review of the formula for setting the National Minimum Wage; raising the threshold of Small Business Rate Relief for single shops located in the high rental zone of the high street; and scrapping the proposed Supplementary Business Rate.

John Dean, bssa Chief Executive, says, Key findings within the Report highlight the fading heartbeat of the high street, casting serious doubts as to whether, without some form of intervention, it will be able to continue to play its vitally important socio-economic role within the community in the long term.

Spiralling overheads and costs are making it increasingly difficult for many retailers to trade on the high street and many essential ingredients of a vibrant high street are now missing. Fishmongers, butchers and greengrocers have vanished without trace in many areas and the knock-on effect is that people no longer want to shop in town centres, despite almost 70% thinking a local high street is a vital part of a healthy society.

There is clear public to support any measures designed to help and protect local retailers. Local councils are largely to blame for failing standards: just under half of consumers questioned for the report think their council is neglecting its responsibilities by failing to support local retailers.

For many people it's about community as much as shopping. Two thirds of people think the high street should be about meeting people. Over half think it should be the focal point of the area. But many town centres are just not safe enough: 62% of people do not think they are a safe place for young people to shop or meet friends.

Interviewee: John Dean, CEO of bssa