Beales to close final department store amid tax rises

Beales, one of the UK's oldest department stores, has announced its closure after more than 140 years of trading, as a result of Budget-induced tax rises.

The former department store chain, which was founded in Bournemouth 1881 and sold electrical items, clothes, footwear and furniture, has since dwindled to just one store in Poole, Dorset. The remaining location will close its doors at the end of May.

Chief Executive Tony Brown said that the employer's National Insurance (NI) contributions, a flagship measure of the Chancellor's Autumn budget, meant that the business had become "unviable".

He said: "This, coupled with the risks and uncertainty of further tax increases in the coming years, have left us no other option. We have been working with the Dolphin Centre, who have been supportive, along with our investors to ensure an orderly exit.

"Our team has been informed, as have our suppliers. We will ensure the exit is managed and no one will be left with a financial loss."

Brown echoed the sentiments of Marks & Spencer boss Stuart Machin, who said that as a result of the Budget, the retail sector was being "raided like a piggy bank".

John Grinnell, Manager of the Dolphin Centre in Poole, which houses Beales' last remaining store, said: "We’re very sorry to see Beales go after so many years here. Our hearts go out to everyone affected by the store’s closure, and we’ll do everything we can to support former Beales employees to find employment elsewhere.

"We’re alarmed to see this happening to lots of retail businesses because of the new Budget and National Insurance increase."

From April, the rate of National Insurance paid by employers will increase from 13.5% to 15%. The minimum hourly rate for workers over 21 will rise from £11.44 per hour to £12.21.

The Government has defended the measures, saying the changes are needed to restore economic stability and increase investment in public services.

Having once operated in 23 locations across the country, Beales has since been shafted by the difficulties facing UK high streets such as high rents, business rates and competition from online retailers.