Blow for shoppers as ANOTHER major retailer issues price hike warning after Budget tax hit
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ANOTHER major retailer has warned that prices will have to rise following Rachel Reeves' Budget tax hikes. The boss of Currys has said price rises will be "inevitable" as it prepares to face £32million in extra costs due to the Autumn Budget. Alex Baldock, group chief executive of the electronics chain, also warned that policies announced by the Chancellor in October will "depress investment and hiring" plans.
![[More than 70 businesses have already written to the Chancellor warning of price hikes and job cuts]](https://www.thesun.co.uk/wp-content/uploads/2024/12/currys-store-seen-london-britain-825349831.jpg?strip=all&w=960)
It is the latest retail business to indicate that some shoppers will see a knock-on effect from increases to business National Insurance contributions and an increase in the National Living Wage. Employers currently pay NICs for most workers earning more than £9,100 a year.
The sum they pay is the equivalent of 13.8% of the employee’s earnings above that threshold. For an employee earning £30,000, for example, the employer would pay NICs of £2,884.20. But in the Budget, the government announced it would increase the tax rate to 15% and reduce the threshold at which firms must pay to £5,000.
It's estimated that the move will raise £25billion - the equivalent of around £800 per employee for each firm. At the same time, the minimum wage will rise to £12.21 an hour next year, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
