Labour tax hike wiping charity shops from high streets, SNP warns

Labour tax hikes are “wiping charity shops from local high streets”, the SNP has warned.

The party said the UK Government’s rise in employers’ national insurance has forced charity shops across Scotland and the rest of the UK to close.

The SNP pointed to the British Heart Foundation (BHF) which cited an “exceptionally challenging trading environment” when announcing last week the closure of about 150 shops, although it said no single factor was to blame.

Last year, Cancer Research UK said it was planning to close about 190 of its charity shops by April 2027.

It blamed “higher national insurance contributions” alongside other factors, including “rising costs, inflationary pressures, and changing consumer habits”.

Disability charity Scope also closed more than 50 stores last year, with the charity’s chief executive, Mark Hodgkinson, citing “rising rents, soaring energy costs, increased staff costs, and the cost of living squeezing customers”.

SNP MP Chris Law, the party’s business spokesperson, described the Chancellor’s national insurance increase as “highly destructive”>

He said: “Labour Party tax hikes are wiping charity shops from local high streets across Scotland and the UK.

“The Labour Party’s national insurance tax hike has been devastating for businesses and public services – and now the figures show it will see scores of charity shops wiped from our local high streets.”

He said the hike was “another broken Labour Party manifesto promise”, pointing to the party’s General Election pledge not to raise taxes on “working people”.

He added: “It is a highly destructive policy that is destroying jobs and making the trading environment impossible for many good local businesses.

“At a time when families are suffering from the soaring cost of living crisis under the Labour Government, it benefits no one to see our valued local charity shops forced to shut their doors because of Westminster tax hikes, which are raising their costs by millions of pounds.

“Charity shops play an important role in our communities by helping families get access to everyday goods and essentials at value-for-money prices, including clothing, furniture, appliances, kitchenware and children’s toys.

“And, of course, they raise vital money to help charities improve our society through the good work they do in a wide range of areas.

“They are the latest victims of the Labour Government’s NI tax hike, which has also hit the hospitality industry, the tourism sector, and many other businesses.”

Law said the policy was creating a “toxic environment that is forcing businesses to raise their prices, cut jobs, squeeze wages, slash investment and, in some cases, shut shops altogether”.

He added: “I urge the Labour Government to think again and scrap its national insurance tax hike, which has done so much damage to our high street and businesses right across Scotland.”

A UK Government spokesperson said: “We support charities with one of the world’s most generous tax regimes for the sector, providing £6 billion in relief last year alone, including exemptions from paying business rates.

“We have also protected the smallest businesses and charities from the impact of the increase to employer national insurance by more than doubling the employment allowance.”