Morrisons has formally blamed “Government policy choices” for increasing financial pressures as the supermarket giant prepares to close around 100 stores across the UK.

The retailer issued a statement warning that a series of rising costs had made some stores financially unsustainable, particularly smaller convenience locations operating under the Morrisons Daily brand.

In comments widely interpreted as criticism of Labour government economic policies introduced since the General Election, Morrisons said:

“This situation has been exacerbated in more recent years by significant cost increases resulting from Government policy choices.”

The statement comes amid growing concern across the retail sector about the impact of higher employment costs and tax changes on businesses already facing tight profit margins.

What Policies Is Morrisons Referring To?

Although Morrisons did not directly name the Labour Party or Chancellor Rachel Reeves in its official statement, reports suggest the company was referring to measures including:

  • Increased employer National Insurance contributions
  • Rises to the National Living Wage
  • Additional packaging and recycling costs
  • Wider operational and compliance expenses facing retailers

Retail analysts say supermarkets, convenience chains and hospitality firms have all warned about mounting pressure from higher staffing and operating costs.

Which Stores Could Close?

Many of the stores reportedly under review are former McColl’s convenience stores acquired by Morrisons in 2022.

The supermarket giant converted hundreds of those locations into Morrisons Daily stores, but some have reportedly struggled to return to profitability.

Hundreds of jobs could potentially be affected if the closure plans proceed.

Political Reaction

The remarks are likely to fuel political debate over the impact of Labour’s economic policies on British businesses.

Opposition politicians and critics of Chancellor Rachel Reeves have argued that higher business taxes and wage costs risk damaging investment and forcing closures across the retail sector.

Meanwhile, supporters of the government argue that increases to wages and worker protections are necessary to improve living standards and public finances.

Growing Pressure Across Retail

Morrisons is not the only major retailer to warn about rising costs.

Over recent months, several major UK chains have raised concerns about:

  • Inflationary pressures
  • Higher borrowing costs
  • Rising wages
  • Energy prices
  • Changes to taxation and regulation

Industry groups have warned that smaller stores and convenience outlets are particularly vulnerable because they operate on much tighter margins than larger supermarkets.

What Happens Next?

Morrisons has not yet published a final list of stores expected to close.

However, the announcement has already sparked concern among staff and local communities, particularly in areas where Morrisons Daily stores provide key local shopping services.