One of Britain’s oldest department stores is shutting its last remaining shop after more than 140 years, blaming tax and wage increases from the government.

Beales, which first opened in Bournemouth in 1881, said trading at its branch in Poole’s Dolphin Centre will cease at the end of May.

Tony Brown, the store’s chief executive, told the Telegraph the business had become “unviable” as it prepared to shoulder further cost increases announced in Labour’s October budget.

“This, coupled with the risks and uncertainty of further tax increases in the coming years, have left us no other option,” he said.

“We’ve been working with the Dolphin Centre, who have been supportive, along with our investors to ensure an orderly exit.

“Our team has been informed, as have our suppliers.

“We’ll ensure the exit is managed and no one will be left with a financial loss.”

Beales has been hit hard by the shift to online shopping in recent years, having fallen into administration in January 2020 – when it was forced to close 22 of its 23 shops.

The British Independent Retailers Association (Bira) warned that the latest closure could be the first of many as retailers struggle with mounting costs.

Commercial director Jeff Moody said: “We’re deeply saddened to learn of Beales’ closure.

“This is not just the loss of another shop – it represents the end of a retail institution that has served communities for nearly one-and-a-half centuries.

“This closure starkly illustrates the devastating impact that recent tax increases are having on our retail sector.”

• beales.co.uk