Poundland has warned it could collapse, putting up to 12,000 jobs at risk, and the Conservative Party has blamed Labour's tax rises for the budget retailer's troubles. The Tories say increases to employers' National Insurance under Rachel Reeves have made it harder to run a business.
Political clash over Poundland's future
In the House of Commons, Tory shadow minister Bradley Thomas criticised the Government over its role in the collapse. He said: "For thousands of Poundland workers, the question today is simple: will I still have a job?"
He added: "Another well-known British brand being in trouble seems less like a surprise and more like an inevitability." Thomas accused Labour of "vindictive policies" that have "driven the cost of doing business to an unsustainable breaking point", and said the Government was "locked in a desperate squabble with Reform over who can intervene the most to engineer a state-sponsored rescue".
Reform UK demands rescue package
Reform UK has demanded a rescue package to protect the thousands of jobs reportedly at risk. However, Thomas said bailing the firm out would "be a failed strategy that offers nothing but false promises to workers and consumers alike".
Labour minister Kate Dearden responded, saying she was "quite disappointed at the tone" of the Conservative Party. She added: "That's your answer to 12,000 people whose jobs are at risk in the run-up to Christmas?"
Government response and next steps
Ms Dearden, who is due to meet Poundland bosses later this week, insisted the Government was "not interfering" but added it would not "sit by and do nothing".
Poundland, which operates 600 stores across the country, has not yet entered liquidation, but it called in administrators last week after a bid to buy the business fell through.
