SHOPS FACE 'LAST CHRISTMAS' AS RECESSION FEAR GROWS

Make-or-break for high street after bruising Labour Budgets

- GILES SHELDRICK

PANICKED high street businesses fear this Christmas could be their last as consumers reeling from a second Labour Budget stay at home and prepare for a looming recession.

The next fortnight could be make-or-break for shops and pubs as consumer confidence dries up, the economy stagnates and unemployment rises.

But even an 11th-hour spending spree is unlikely to spare those clinging on for dear life in retail and hospitality.

Economist Julian Jessop said: "It is very hard to restore economic confidence once it has been lost.

"The UK may now be on the cusp of a significant decline in activity that is spread across the economy and lasts more than a few months.

"This period will certainly feel like a recession to businesses struggling to stay afloat and to people worried about losing their jobs.”

There are 74,000 fewer retail jobs than at the same point last year, and 355,000 less than in 2015, according to the Office for National Statistics.Unemployment stands at 5.1%, redundancies have surged to their highest level since the pandemic, and next year businesses face rate hikes that could push many over the edge.

December is the biggest month of the year for UK retailers, but as struggling workers count the pennies it is feared the pre-Christmas rush may not materialise, depriving many stores of a much-needed lifeline.

Shadow Chancellor Sir Mel Stride said: “With taxes rising to fund Rachel Reeves’s Benefits Budget it’s no surprise fewer people are out shopping ahead of Christmas.

“The Chancellor’s choices are forcing people to tighten their belts, and that’s hurting the very businesses Labour claims to support. The cost of doing business under Labour is crippling our economy.

“From the jobs tax to the looming business rates rise, Rachel Reeves has destroyed jobs, stalled growth and driven inflation higher. Labour has no backbone and no plan for the economy.