Lidl faces ‘tens of millions of pounds’ in extra costs and retailers are ‘reeling’ after the Budget – London Business News | Londonlovesbusiness.com

The boss of Lidl has said they are facing “tens of millions of pounds” in extra costs because of the Budget and retailers are “reeling” amid Labour’s tax hikes.

The Chancellor said during her Budget there will be a £25.7 billion change to employer’s national insurance contributions which will increase the rate of tax and Rachel Reeves has also reduced the threshold that companies will pay.

The UK’s biggest retailers have warned that job losses is “inevitable” and customers will be paying far higher prices as they will take a £7 billion hit from the Autumn Budget’s tax increases.

More than 70 businesses have sent an open letter to Rachel Reeves warning that price hikes and job losses is a “certainty.”

Ryan McDonnell, Lidl GB chief executive of Lidl told the PA news agency, “There is a lot of impact that we will have to negotiate and I think the letter shows that the industry is reeling a lot.

“We are talking about £7 billion for the whole industry. For us it will be somewhere in the tens of millions.”

He warned that soaring costs will end up with “greater inflationary pressures” and McDonnell insisted that Lidl will “maintain market-leading pricing.”

McDonnell added, “Now, 60% of households are choosing to shop at Lidl, and they’re coming back more frequently, which is a fantastic sign of increasing loyalty.

“We have great momentum and, although our ambitions have no ceiling, we won’t rest on our laurels.

“We’ve been laying the foundations for further growth whilst creating an even better store experience for shoppers.”