Reading's empty shopfronts in pictures as cost of living crisis looms

As residents braces themselves for energy hikes tomorrow, compounding an already spiraling cost of living crisis, it is likely they will spend less on the high street.

Changes to business rates will also impact retail, hospitality and leisure businesses from April 1.

Reporter Brad Young took to the centre of Reading to capture the silved shutters, scrubbed-away signs and closing down notices that litter the area.

Cost of living

A closed sign on Fabric Land in Cheapside (their online shop remains open)

The Trades Union Congress (TUC) said pay and benefits will be “swallowed up” by higher bills and inflation, with households hit with crippling new energy bills as the price cap rises on Friday.

The union body said measures announced in the Chancellor’s spring statement last week were “woefully inadequate”, warning of the worst living standards crisis in generations

A closed Subway in London Street

A Government spokesperson said: “We understand that people are struggling with the rising cost of living – we can’t shield everyone from the global challenges we face but we’re putting billions of pounds back into the pockets of hard-working families across the UK.”

Business rates are going up

Graffiti on the window of a what was once Samsonite in Friar Street

Retail, hospitality and leisure businesses were supported during the pandemic with financial help including a break to the business rates property tax.

The tax break in England has been steadily unwound with businesses receiving a 66% reduction of their rates up to £2 million per firm over the past nine months.

A boarded up shop front in Dusseldorf Way

However, this will reduce to a 50% reduction with a cap of £110,000 per business on April 1.

The reduction, and even sharper declines from previously more generous schemes elsewhere in the devolved regions, means business across the UK will face a £7.1 billion increase in rates for the year.

Office chairs piled in an empty shop front in Queens Walk

A scrubbed out sign in Queens Walk

This could lead to firms increasing prices to help cover higher property costs.

Robert Hayton, UK president of real estate adviser Altus Group, said: “The government and devolved administrations are acting as if there hadn’t been a pandemic and seem oblivious to the cost of doing business crisis.

Boarded up shop windows opposite the Town Hall

The scratched front window of an Old Co-Op bank in Castle Street

A for sale sign in St Mary's Butts

“The tapering off of business rates relief takes away vital breathing space for high street businesses.”

Business leaders across the retail and hospitality sectors are continuing calls for widespread reform of the business rates system, which is still linked to property valuations from 2015.

VAT increases

The remains of a closing down sale in Broad Street

The cost of buying a pub meal, soft drink or hotel stay could become more expensive from April as VAT levels across the hospitality sector lift back to 20%.

The industry saw VAT dropped to 5% to support its recovery during the pandemic.

A ladder inside a closed store in Dusseldorf Way

A sign of new life inside a closed store in Chain Street

It rebounded back to 12.5% in October last year as restrictions eased, but it is now due to rise again to 20% on Friday.

Despite the initial fall in tax, few pub groups, restaurants and leisure businesses were able to pass on the benefits of the tax break – which covered soft drinks, food, events tickets, accommodation and other areas – to customers due the financial impact of the pandemic.

A row of empty units in Union Square

Bosses said that lengthy Covid disruption, significant debts and soaring cost inflation in recent months mean the reduced tax level has been used to help absorb costs.

However, industry chiefs, including Wetherspoon founder Tim Martin and Young’s boss Patrick Dardis, said prices would now have to increase significantly for customers as a result of reduced VAT support.

A painted over window in Market Place

Leaders warned the Government that the VAT increase would contribute to a “cliff edge” on Friday as wages and business rates changes also come into force.

Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said the VAT rate increase alone is expected to cost UK pubs more than £500 million over the next year.

UKHospitality boss Kate Nicholls said “might prove fatal” for business owners.

National Insurance

A busy Tortilla next to a closed store in Broad Street

On April 6, the Government’s proposed National Insurance tax rise will come into force.

Ministers have said the plan is to use the extra revenues to fund the NHS, health and social care.

Clifton Cards closed in Broad Street

It will see employees, employers and the self-employed all pay 1.25p more in the pound for NI.

For employees they would previously pay 12% on earnings up to £50,270 and 2% on anything above that. From April 6, the rate goes up to 13.25% and 3.25% respectively.

The ceiling partially collapsed inside the Horn Pub

A man walks past an empty shopfront in London Street

For the self-employed, rates will go up from 9% and 2% to 10.25% and 3.25%.

Payments will only be collected on wages above £9,880, although this rises to £12,570 in July – a threshold rise announced by Chancellor Rishi Sunak at the recent Spring Statement.