Poundland sold for a pound: Government tax and wage policies meant that collapse was inevitable
The government’s tax and wage policies meant that the collapse of the chain store Poundland was inevitable, says leading audit, tax and business advisory firm, Blick Rothenberg.
Robert Salter, a director at the firm, said: “The collapse of a major retailer like Poundland was inevitable due to government policy introducing a swathe of significant tax increases and other employment related cost rises for businesses.”
He added: “The government has sharply increased the minimum wage and made labour law changes so employees have ‘guaranteed protections’ from their first day of work. Along with higher business tax rates and increased employer National Insurance Contributions (NIC), businesses are facing unbearable pressure on their finances. Better protections and higher wages are a good thing for workers, but they won’t be able to appreciate them if the business they work for collapses.”
Robert said: “Although businesses can pass some of these additional costs on to customers, this is not always possible. Brands that market themselves on being low cost in particular have to decide if they can risk a cost rise that their core customer base may be unable to afford.”
He added: “These problems for businesses have then been compounded by wider socio-economic problems such as the cost-of-living crisis and the economic uncertainty that US President, Donald Trump’s tariffs have created.”