The retail sector, one of the UK’s largest employers, is facing up to 900,000 job losses and the closure of thousands of shops in the next decade, says a new report by an industry body, according to the Guardian.

The British Retail Consortium (BRC) warns that rising costs due to the “national living wage” and the new apprenticeship levy – both introduced by George Osborne in last year’s budget - could increase the rate of job cuts.

“Both have sound intentions but could fail on implementation,” the BRC, which represents retail companies, stated.

“Together these effects could mean there are as many as 900,000 fewer jobs in retail by 2025 but those that remain will be more productive and higher earning.”

The retail sector currently employs 3 million people - but of the 270,000 shops in the UK today, up to 74,000 could shut. Nearly 30% of these could be in Wales and the north of England, the report says.

“Areas that are already economically fragile are likely to see the greatest impact of store closures and some of the people affected by changing roles will be those who may find it hardest to transition into new jobs that are created.”

Sir Charlie Mayfield, chairman of the BRC and head of the John Lewis Partnership, said that although retailers supported the introduction of higher pay, employment would be effected. “People are not realizing just how significantly the workplace is changing and I think that is dangerous,” he said.

Mayfield added that the government needs to rebalance the burden of taxation – where retailers such as John Lewis pay far higher levels of tax than companies like Amazon. “Headline reductions in Corporation Tax may encourage some businesses to move their tax domicile to the UK, but they are effectively being paid for by businesses who are large users of property, large employers and significant users of fuel,” the report says. “The burden of taxation on the retail industry has become unsustainable and must be rebalanced.”