Labour calls for Hospitality and High Streets Fightback Fund after M&S announces 7,000 job cuts
Labour has called upon the Government to introduce a Hospitality and High Streets Fightback Fund following the news this morning that Marks & Spencer is to make an additional 7,000 redundancies in the coming months.
The cull at M&S follows news last week that Debenhams is to cut 2,500 staff along with thousands of jobs already having been lost following the collapse of Oasis and Warehouse, and the closure of TM Lewin and Cath Kidston stores to name a few. River Island, Ted Baker and Arcadia are also making significant cuts (see chart below).
Across retail in general it is estimated that more than 40,000 jobs have been lost, while in fashion retail alone it is more than 23,000. The Government’s furlough scheme for workers comes to an end in October and while it has launched the back to work bonus, offering firms £1,000 for every furloughed staff member a business retains, there are fears there will still be thousands more retail jobs axed.
Chancellor Rishi Sunak unveiled his Plan for Jobs in the summer statement alongside a 15% cut in VAT to add to the 100% business rates relief already available for eligible businesses.
Labour has now called for a tailored Hospitality and High Streets Fightback Fund to protect jobs and help struggling firms in the sector.
It believes an underspend in coronavirus business grant schemes could be used to unlock significant funds for local areas to target help for those in particular distress, including restaurants and retailers.
Lucy Powell, shadow minister for business and consumers, said the M&S job losses were “devastating for the workers involved yet they also tell a much bigger story about the threat to our high streets”.
She added: “The scale of job losses was not inevitable but the incompetence of this Government means we’re now seeing wave after wave of redundancies, and store closures.
“Labour has called for a Hospitality and High Streets Fightback Fund to support businesses in distress and to save jobs now. Ministers must change course.”
Fashion retail jobs lost or at risk since the start of the COVID-19 crisis
March 31 – Laura Ashley – 268
April 17 – Debenhams – 422
April 21 – Cath Kidston – 900
April 30 – Oasis Warehouse – 1,800
May 19 – Antler – 164
May 21 – Clarks – 900
June 1 – Aldo UK – unknown number
June 5 – Victoria’s Secret – 800 at risk
June 8 – Mulberry – 375
June 10 – Monsoon Accessorise – 545
June 10 – Quiz – 93
June 23 – Shoe Zone – unknown number of jobs in head office
June 30 – TM Lewin – 600
July 1 – Harrods – 700
July 1 – Arcadia – 500
July 7 – Pentland Brands – 350
July 7 – River Island – 250
July 9 – John Lewis – 1,300 at risk
July 15 – Johnsons Shoes – 79
July 16 – Burberry – 150 in UK, 350 overseas
July 17 – Oliver Sweeney – unknown number lost after five stores closed
July 19 – Ted Baker – 500
July 19 – Harvey Nichols – unconfirmed number at risk
July 20 – Marks & Spencer – 950 at risk
July 28 – Selfridges – 450
July 28 – Baird Group – 264
July 29 – Hotter Shoes – “a number” of jobs lost due to 46 store closures
August 3 – DW Sports – 1,700 at risk
August 5 – M&Co – 327
August 11 – Debenhams – a further 2,500
August 12 – River Island – a further 350
August 14 – Jigsaw – 20 stores at risk, unknown number of staff
August 18 – Marks & Spencer – a further 7,500
Total: 23,010 jobs lost or at risk, with hundreds more "unknown"
