Impending Wave: Business Insiders Fear Mass Closures After Chancellor's Autumn Statement..

Fears an increase on Gambling Tax will drive many betting shops to close, slashing thousands of jobs.

Business insiders "fearing the worst for Teesside", as a tidal wave of business closures could be just around the corner.

21st October 2025

Following the abrupt closure of Pizza Hut's Hartlepool branch earlier this week—where staff were given just 30 minutes' notice that their jobs had effectively 'ended'—the UK business landscape is said to be bracing for potentially far worse in the coming weeks.

With Chancellor Rachel Reeves set to deliver her Autumn Budget in November, industry leaders and insiders are sounding the alarm over a possible tsunami of business closures, driven chiefly by anticipated tax hikes and business rates. At the epicenter of these concerns is betting giant Betfred who have a number of stores across Teesside & County Durham, which has publicly warned it may close every one of its UK stores, putting thousands of jobs at risk. The broader sentiment among business owners is one of dread. A recent survey revealed that eight out of ten small businesses are fearful of the Budget's impact, citing rising costs and potential policy changes that could push many business owners to the brink.

Experts are warning that without bold reforms, such as freezing or extending relief on business rates, up to 60,000 small businesses could face closure, putting as many as 150,000 jobs at risk nationwide.

This comes amid a stark reality: with 71% of UK businesses having considered shutting down in the past year due to escalating costs, with sectors such as retail and hospitality particularly vulnerable. The British Chamber of Commerce has urged Chancellor Rachael Reeves to avoid further tax burdens, describing the Budget as a "make-or-break moment" for firms already at breaking point.

Hospitality and retail groups are especially vocal. The Co-op has highlighted that without urgent business rates reform, thousands of their local stores could vanish from high streets, exacerbating the decline in footfall and consumer spending.

Pubs and restaurants fear the end of current business rates relief could trigger widespread closures, with insiders predicting a "groundhog day" of repeated fiscal squeezes if the Chancellor doesn't act decisively. One report based on a survey of 300 small business owners found that four in five now view Business rates reform as essential for survival, underscoring the precarious state of the sector.

Betfred's situation exemplifies these fears on a grand scale. The company's co-founder, Fred Done, has stated that a proposed hike in gambling taxes—potentially part of a £3 billion raid on the industry—would force the closure of all its 1,287 high street betting shops, putting around 7,500 jobs at risk, with Done warning the odds of survival are "10 to one against" if the tax increase proceeds.

Already, its claimed that about 330 of Betfred's outlets are loss-making, with insiders close to the group claiming that any additional fiscal pressure would make operations unsustainable. Done, a Salford billionaire, emphasised in interviews that the decision would be inevitable if Reeves targets the gambling sector to plug budget holes. The threat echoes across the industry, where other bookmakers and racing stakeholders fear similar fallout, potentially devastating local economies reliant on these venues.

The Autumn Statement's potential ripple effects extend beyond individual sectors. With the UK economy showing signs of significant slowdown—with growth at just 0.1% in August—analysts predict Reeves may need to raise taxes by up to £20 billion to meet fiscal rules, adding fuel to the fire for struggling businesses.

Insiders argue that without measures such as extended relief for small premises or targeted support for high-cost industries, the wave of insolvencies could surpass last month's 2,000 busts, further straining employment and consumer confidence.

With the latest news of Hartlepool's Pizza Hut staff being made redundant, business leaders are said to be watching Reeves' Budget with bated breath. Will it provide the lifeline businesses need, or accelerate what many claim will be a cascade of closures?

For workers at Betfred and beyond, the stakes couldn't be any higher. But the universal agreement appears to be one that the UK is sleepwalking towards a 2007 style financial crash, & seeing a repeat of all the consequences that went along with it