A group of Britain’s largest retailers has warned jobs will be lost and prices will rise due to the national insurance rise announced in October’s Budget.
More than 70 businesses including Tesco, Asda and Sainsbury’s voiced their concerns in an open letter to Chancellor Rachel Reeves, saying the changes mean price hikes are a “certainty”.
Ms Reeves revealed a £25.7 billion change to employers’ national insurance contributions in last month’s Budget, which would increase the rate of the tax and the threshold at which firms must pay.
Now, businesses are claiming the combined raft of packages announced in the budget including national insurance rises, packaging levies and increases to the national minimum wage could cost the industry more than £7 billion each year.
