Key Highlights
- Mike Brewer of the TV show Wheeler Dealers has closed his 15-year-old used car dealership.
- The closure is attributed to increased costs due to Labour government’s taxation policies.
- Mike Brewer Motors, based in Sheffield, will shut down, resulting in 60 job losses.
- Brewer criticizes the rise in employer National Insurance contributions as the main cause of the business’s failure.
The End of an Era: Mike Brewer Closes His Used Car Dealership
Mike Brewer, a star from the popular TV show Wheeler Dealers, has announced the closure of his 15-year-old used car dealership due to increasing costs. The decision was made after negotiations with the Labour government regarding tax increases, particularly the rise in employer National Insurance contributions, which have become unsustainable for the business.
A Heartfelt Goodbye from Mike Brewer Motors
In a statement posted on their official website, Mike Brewer Motors expressed their gratitude to loyal customers. The announcement read: “After many successful years in business, we have made the difficult decision to close Mike Brewer Motors. We would like to extend our heartfelt thanks to all our customers for their loyalty and support over the years. We are incredibly proud of the reputation we’ve built together.”
Impact on Local Economy and Small Businesses
The closure of Mike Brewer Motors is expected to result in the loss of 60 jobs, highlighting the challenges faced by small businesses across the UK. The decision comes as a wave of financial distress hits businesses, with over 55,530 firms identified as being in “critical” financial distress, according to the latest Red Flag Alert report by Begbies Traynor.
Government’s Role and Future Implications
Brewer emphasized that the increase in employer National Insurance was a major factor leading to his business’s closure. He stated: “Unfortunately, because of the government – as it’s heavily staffed that business – it’s meant that it is untenable to run any more, what with the government’s new taxation on staff.” This sentiment echoes warnings from other businesses who fear further tax increases could exacerbate their financial struggles.
Chancellor Rachel Reeves faces mounting pressure to provide support for small and medium-sized enterprises (SMEs) in her upcoming Autumn Budget. With inflation rising and labour costs increasing, the government is under scrutiny to deliver urgent support to prevent a wave of business failures. Julie Palmer from Begbies Traynor commented: “With over 55,000 companies now in serious financial distress, the upcoming Budget must deliver urgent support to avoid a wave of failures, especially among SMEs already operating on a knife edge.”
Conclusion
The closure of Mike Brewer Motors is a stark reminder of the challenges facing small businesses in the current economic climate. As the government prepares for its Autumn Budget, the stakes are high for industries like retail and automotive that have been hit hardest by rising costs and taxation policies.
