Scores of Charity Shops Forced to Close as Budget Changes Bite

Forbes Burton’s 2025 report on the UK’s distressed businesses uncovered a raft of charity shop closures after the budget saw the cost of employing staff rise.

• Hundreds of charity shops lost from high street
• Over 7,000 staff and volunteer roles gone
• Tens of thousands of jobs lost elsewhere, with Stoke’s pottery industry close to disappearing

London, 17th December 2025—Nationwide business closure firm, Forbes Burton have released their 2025 report of the UK’s distressed businesses: over 200 big brands that have had to either close, enter administration, or let go of staff or UK branches throughout the last 12 months.

The surprise this year was just how many charity shops have had to close. Cancer Research UK alone announced plans to shelve 188 sites. Meanwhile, Scope culled more than half of their shops, while Samaritans suggested they may be forced to follow suit.

Rick Smith, managing director of Forbes Burton, commented that “many of the companies on the list cited the autumn budget as the final nail in the coffin for them.

“Despite the tax relief that charity shops are entitled to, many operate close to the edge of their margins. As such, any significant jump in National Minimum Wage can have a huge impact.

“Of course, it doesn’t just affect staff working for minimum wage, but also those just above it, as the increases have been large enough to match or even drag some salaries below the new ruling. Add to this the increased amount of people selling their clothes on sites like Vinted instead of donating, and you can start to see how the current charity shop model is in trouble.

The full report can be found here -
https://www.forbesburton.com/news/uk-distressed-business-lis...

Contact
Robbie Meechan
Forbes Burton
robbie.meechan@forbesburton.com
0800 975 0380