NEWS

Economic consequences for retail

More than 80 of the UK’s largest retailers have written to Chancellor Rachel Reeves regarding the measures announced in the Autumn Budget on 30 October.

In the letter, the retailers, including Tesco, Amazon, Boots, Specsavers and B&Q, highlighted the ‘economic consequences of the Budget for retail’. The group outlined its ‘significant concerns’ about the impact of the Budget on the retail industry and the consequences for inflation, employment and investment.

The letter states that the impact of the change to the employer National Insurance Contributions (NICs) threshold will be ‘particularly acute’ given that the UK retail sector employs large numbers of people in entry-level and part-time positions. It said that the retail industry’s costs could rise by up to £7 billion per year, increasing prices and adversely affecting suppliers.

The businesses warned that the speed at which new costs accumulate creates ‘a cumulative burden that will make job losses inevitable’ and higher prices ‘a certainty’.

The retailers also stressed that it will not be possible for the sector to absorb the ‘significant cost increases’ over ‘such a short period of time’, with consequences for pay growth, inflation and employment. The letter can be read in full here.

28/11/2024