Britain’s biggest retailers demand Rachel Reeves outlines plan for growth amidst food inflation concerns
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BRITAIN’S biggest retailers have demanded the Chancellor reduce inflation risks by easing cost pressures and outlining a plan for growth. Tesco and Marks & Spencer both yesterday confirmed that prices would have to rise after the steep increase in wage costs from the Budget.
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Meanwhile Tesco toasted its “biggest ever Christmas”. The grocery giant revealed that despite the cautious consumer backdrop, shoppers had still splurged on its Finest range, with the premium line’s sales up 15 per cent. But boss Ken Murphy said the chain would be facing a £250million increase to its wage bill from changes to employers’ National Insurance contributions.
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He said there was “no doubt” that the Budget had “impacted the cost of doing business in the UK for all industries and particularly for retail”. He likened the hit to crises over the past four years including the energy price shock and pandemic.
![[Stuart Machin, Marks & Spencer boss, in a store.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/preferred-byline-shot-772047551.jpg?strip=all&w=960)
Amid warnings that food inflation could rise to 4.2 per cent, Mr Murphy said the Government could do several things to help reduce the risks of price rises. He said a “fair outcome” on the Government’s business rates review to reduce store costs and more flexibility on packaging levies would “significantly help retailers absorb the costs better”.
The British Retail Consortium has estimated that retailers face a combined £7billion increase in costs this year and said that the “only way for prices is up”. Mr Murphy said that Tesco would flex its status as Britain’s biggest supermarket to drive efficiencies and keep a lid on inflation.
