Seasalt warns of redundancies amid Budget pressures

Cornish clothing brand Seasalt has confirmed a number of roles are at risk of redundancy, following increased tax burdens as a result of incoming Budget measures. 

The company also shared concerns about the continued decline in positive customer confidence and rising inflation rates.

In a statement seen by TheIndustry.fashion, Seasalt said: "In order to meet the challenges presented by an ever-changing retail industry, the majority of those beyond our control, Seasalt must remain agile so that we can protect our business for the long term.

"To continue investing in our growth plans, we have thoroughly reviewed our cost base, to ensure our expenditure is not outpacing ourselves and equally achieve the growth that is essential to the viability of our business.

"This analysis has included looking at efficiencies and overall productivity, a transformation of our Head Office structure and a review of our retail team operations, along with, where possible, reducing the expenditure necessary to realise our sales growth.

"As a result of the above, unfortunately, a number of roles will be placed at risk of redundancy across the business. We never take these incredibly difficult decisions lightly at Seasalt and give considerable thought to alternative options first. We will be offering our employees every support through the consultation process over the coming weeks.

"We have faced many unprecedented pressures over recent years and the measures that we take to mitigate these situations will always be in the best interests of securing the future of the business."

Seasalt's remarks add to a slew of warnings from other retailers that they will be squeezed by higher taxes and employment costs.

The boss of Marks & Spencer warned that the Government’s Budget policies could shrink the UK’s retail sector, squeeze jobs and slow wage growth.

Meanwhile, NEXT cautioned over slowing sales growth in 2025 and said it would need to hike prices due to the impact of recent Budget measures.

The new Budget includes a higher rate and lower threshold on employer's National Insurance (NI) contributions, an increase in the national minimum wage, and an increase in the national living wage, all of which are leaving employers more than usually squeezed.

The Government said extra revenues raised from higher taxes on businesses will help fill a gap in the UK’s public finances and be plugged into things like infrastructure and the public sector.