Another major retailer warns of price hikes following Budget tax raid in latest blow for shoppers
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ANOTHER major retailer has warned of price rises following the Government's Autumn Budget tax raid. The boss of M&S said it would have to pass on extra costs caused by the upcoming hike to employer National Insurance contributions (NICs) and minimum wage.
![[M&S has warned of price rises following the Government's Autumn Budget]](https://www.thesun.co.uk/wp-content/uploads/2025/01/1884-marks-spencer-group-plc-845317120.jpg?strip=all&w=960)
Stuart Machin said the retailer wanted to pass on "as little as possible" in costs to customers but the company had been forced to tweak its business plan for the coming years. He added any price rises would be "small and behind the market" but did not say how much exactly they would go up by.
Before Christmas, M&S warned that the combined rise in NICs and minimum wage would cost the company £120million. Mr Machin said today: "Our suppliers are also feeling the pinch, and that comes through straight to retail.". The M&S boss, who took the helm in 2022, said he did not foresee big job losses following the Government's tax raid.
However, he said the retailer would have to be diligent on where it recruited new staff. “Does it make us look at how we recruit? Of course it does, and that does mean we have to think about where we invest.". The price warning comes despite M&S posting positive sales over the busy festive period, driven mostly by its food division.
The retailer made £4.06billion in sales during the three months to December 28, up 5.6% compared to the same period the year before. M&S food sales grew 8.7% year-on-year, and the department made up just under two-thirds of total sales. In contrast, the company saw 1% sales growth across its clothing, home and beauty departments.
