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  • 📈 Business Rates Crunch Could Close 17,000 Shops

📈 Business Rates Crunch Could Close 17,000 Shops

2,000 Jobs Saved in TGI Turnaround

October 07, 2024

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This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Business Rates Crunch Could Close 17,000 Shops

  • 2,000 Jobs Saved in TGI Turnaround

  • Record-High House Prices: The UK’s Comeback!

The summary: Retail heavyweights are urging Rachel Reeves to slash business rates and save our high streets from becoming a shop-free zone, while also boosting local economies and jobs—time to level the playing field!

The details:

  • Retailers Rally for Relief: Over 70 big-name retailers, including Tesco and Ikea, have penned a letter to Chancellor Rachel Reeves, pleading for a 20% cut in business rates before their shops become nothing more than historical footnotes.

  • A Taxing Situation: The British Retail Consortium claims retailers are coughing up 7.4% of all business taxes, while only contributing 4.9% to the UK’s economy—surely they deserve a better deal than that!

  • Closure Catastrophe Ahead: Without immediate action, the BRC predicts a staggering 17,000 shops could close in the next decade, turning high streets into ghost towns where tumbleweed replaces shoppers.

  • A Budgetary Balancing Act: With the government facing a £22 billion shortfall, will Reeves take the retail industry's plea to heart, or will her pro-growth ambitions lead to more cash-strapped businesses? Time will tell, but the stakes couldn’t be higher!

Why it matters: If retail giants keep footing the bill with unfair taxes, our high streets could end up emptier than a pub on a Monday morning. With 17,000 shops at risk, jobs and local economies would take a pounding, leaving us with online shopping and boarded-up windows. Rachel Reeves’ response could either revive the high street or make it a relic of the past—no pressure, Rachel!

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The summary: A rescue deal is set to save over 2,000 jobs and most of TGI Fridays’ UK sites, offering a glimmer of hope for the high street and your favourite American diner experience!

The details:

  • A rescue deal is set to save over 2,000 jobs at TGI Fridays, with Breal Capital and Calveton poised to snap up most of the UK chain by Monday.

  • Between 50 and 55 of the 87 sites will be saved, though sadly around 1,000 jobs may still be lost in the shuffle.

  • Hostmore, TGI Fridays' parent company, filed for administration last month after a "challenging" run, though Thursdays (the trading subsidiary) remains unaffected.

  • Breal and Calveton, who also own posh hotspots like D&D London, are set to inherit the UK leases and the TGI Fridays brand in this deal.

Why it matters: The fate of 2,000 jobs and your favourite spot for mozzarella sticks is on the line, as TGI Fridays' UK future teeters on a rescue deal. With a hefty chunk of sites saved but some inevitable closures, this could be a shake-up for your local high street. Meanwhile, Hostmore’s dramatic collapse serves as a cautionary tale of business misadventures, despite Thursdays still standing tall.

The summary: With house prices nearing record highs, mortgage rates dropping, and buyer confidence bouncing back, the UK property market is looking lively again—though first-time buyers might still feel a pinch!

The details:

  • UK house prices almost hit a new record in September, reaching £293,399, just shy of the all-time high set in June 2022 – clearly, we're back in the property game!

  • With mortgage rates easing and wage growth up, buyer confidence has soared – mortgage agreements have jumped by 40% since last year. Cheers to lower interest rates!

  • Northern Ireland remains the nation’s property superstar with the fastest annual house price growth, while the rest of the UK follows suit with a 4.7% rise.

  • While rates around 4% are making homes more affordable, many first-time buyers are still left clutching their wallets, as housing costs continue to pose a challenge.

Why it matters: UK house prices brushing record highs suggests the property market’s back on its feet, tempting buyers out of the woodwork. Lower mortgage rates are easing the pain, but for first-time buyers, the dream home might still be a bit out of reach. As for Northern Ireland, they’re winning the house price race – not exactly the medal everyone’s after!