Two thirds of retailers to hike prices because of Rachel Reeves’ budget, industry warns
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The British Retail Consortium said 67 per cent of the finance bosses they asked said they would raise prices. Two thirds of the nation’s top retailers have warned they will have to raise prices to cope with rising tax bills triggered by chancellor Rachel Reeves’s budget.
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The British Retail Consortium, whose members include giants like Marks & Spencer and Boots, said 67 per cent of the 52 finance bosses they surveyed said they would raise prices in response to increases in employers’ National Insurance Contributions from April.
Just over half said they would be reducing their paid number of hours and overtime, while 46 percent said they will have to reduce staffing numbers in stores and 31 per cent said the increased costs would lead to further automation. Businesses in general, and retailers in particular, claim they will be hard hit by the tax increase which aims to raise £20bn for the Treasury. Retailers often employ more staff than most companies, at relatively lower wages and often on tight margins.
This means the decision by Ms Reeves to lower the threshold at which the tax is paid from £9,100 to £5,000 hits them particularly hard, they say. BRC chief executive Helen Dickinson said: “With the Budget adding over £7 billion to their bills in 2025, retailers are now facing into the difficult decisions about future investment, employment and pricing.
“As the largest private sector employer, employing many part-time and seasonal workers, the changes to the National Insurance threshold have a disproportionate effect on both retailers and their supply chains, who together employ 5.7 million people across the country.
