Retailers warn of job losses and price hikes following UK budget
The letter to finance minister Rachel Reeves calls for a phased implementation of the National Insurance threshold changes, a delay in the packaging levies, and a review of proposed business rate changes
Print19 November 2024
Britain’s largest retailers have warned that last month’s budget will inevitably lead to higher prices, job losses, and reduced investment.
In a letter coordinated by the British Retail Consortium and signed by 79 retail leaders – including executives from Tesco, Marks & Spencer, Sainsbury’s, Amazon UK, and Boots – retailers urged a meeting with finance minister Rachel Reeves to address the challenges posed by the new government policies.
Concerns raised
According to Reuters, the letter expressed concern over the government’s decision to increase employers’ National Insurance contributions by 1.2 percentage points to 15%, effective from April 2024, and lower the threshold for payments from £9,100 (€10,877) to £5,000 (€5,976).
Retailers also highlighted the 6.7% minimum wage increase, which they say will add to the sector’s growing financial burdens.
Annual costs rising
As reported by Reuters, retailers warn that the industry, which directly employs three million people, is facing a £7 billion (€8.3 billion) rise in annual costs starting in 2025 due to the new tax policies, higher business rates, and packaging levies.
They argue that absorbing these costs will be impossible, leading to inflation, slowed pay growth, store closures, and job reductions, particularly for entry-level positions.
The letter calls for a phased implementation of the National Insurance threshold changes, a delay in the packaging levies, and a review of proposed business rate changes.
Read more: NI drinks industry welcomes excise freeze in UK Budget
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