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Retailers feel the heat as 40 shut up shop every week

Responding to the announcement that 2,197 retailers became insolvent in the 12 months ending Q2 2018, and the number of individual insolvencies reached its highest quarterly level for six years, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: 

“Small retailers are up against a perfect storm of rising employment costs, spiralling business rates and high inflation.

“Some will have benefited from greater consumer spending throughout the World Cup and a scorching summer. For too many though, this hasn’t proved enough to survive on our high streets, where mounting operating costs are the norm. 

“There are other factors at play here too – cuts to cash machine funding and the loss of thousands of bank branches in the last few years are hurting high street footfall all over the country.  

“It’s a real concern to see almost 1,000 self-employed individuals suffering bankruptcies in the first three months of this year alone.

“The self-employed community, now 4.8 million-strong, is still denied basic support in too many areas. It’s time for the Government to deliver statutory paternity and adoption allowances for these strivers.  

“The Government’s 12-month delay to abolition of the anachronistic Class II National Insurance system is coming to an end. An announcement at the Autumn Budget to remove this charge on the entire self-employed population, regardless of their income levels, would be a shot in the arm for millions of entrepreneurs.”

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