Clintons is to close shops as it struggles to cope with Rachel Reeves’ tax and minimum wage hikes. The card retailer returned to profit earlier this week, but has confirmed that increased costs have made operating a number of its shops financially unsustainable. The announcement comes despite the closure of 38 of the company’s stores, resulting in the loss of more than 300 jobs, in the last financial year. In a statement, Clintons said: "The company has continued to close loss-making stores and the portfolio of retail stores is now down to approximately 170 stores.

"The high street continues to be unpredictable and the company is seeing reduced footfall in the stores year on year. The company continues to monitor the performance of the existing estate and to close the poor performing stores, which, whilst impacting on turnover, should improve profitability moving forwards."

The firm’s shop in Keighley in West Yorkshire announced earlier this month that it would close on June 14, the Sun reports.

The outlet has started a clearance sale that offers 20% off its stock.

In addition, signs stating "Everything Must Go" have been displayed at a store in Leamington Spa, where customers can buy items for 50% less.

In its latest financial update, the company said: "Like many other retailers, the company continues to face significant cost pressure on wages given the increases in the national minimum wage.

"Conversely, energy costs for the business began to ease during the year with the deal in October 2023 representing a material saving compared to the deal for the prior year."

The economy grew unexpectedly by 0.5% in February, figures have suggested.

But the Chancellor’s National Insurance increase for employers and National Living Wage rise kicked in at the beginning of this month, and there is concern about the effect of Donald Trump’s tariffs could have on the UK’s GDP.

Ms Reeves said: “These growth figures are an encouraging sign, but we are not complacent. The world has changed and we have witnessed that change in recent weeks.

“I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them.

“This Government will remain pragmatic and cool-headed as we seek to secure the best deal with the United States that is in our national interest.”

Mel Stride, the Conservative Shadow Chancellor, said: “Since coming to office, Labour’s choices have killed growth stone dead and there is still a long way to go to recover.”