All the businesses that have warned of price hikes for customers on the back of Rachel Reeves' budget
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The Government's plans in Chancellor Rachel Reeves' Autumn Budget have prompted some high street retailers to warn customers of possible price increases starting in April 2025. The minimum wage for adults is expected to increase by 77p to £12.31 from April 1, while the employer national insurance rate is expected to rise by 1.2 per cent to 15 per cent starting on April 6.
Here are all the businesses that have declared they may be increasing prices. Due to the announced changes, M&S bosses said it is one of the retailers that will be paying a larger tax burden this year. Sainsbury's warned that it would lose an additional £140m as a result of the budget, which could impact its prices.
Simon Roberts, the company's CEO, said that in order to lessen the impact on consumers, the chain will have to co-operate with its suppliers. “We’ll be working really closely to make sure that, between us, we find the best answers we can and we continue to give customers the best value that we possibly can.”.
Next has also warned that its costs will rise by £67m, part of which it will have to pass on to customers. The shop stated that, due to the increase in employer national insurance contributions, it will have to impose an “unwelcome” one per cent pricing hike.
It cautioned that “as employer tax increases, and their potential impact on prices and employment, begin to filter through in the economy”, sales growth will decline significantly over the coming year. The largest bakery business in the UK stated that it had to pass along part of its increased expenses to its customers.
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