Toby Carvery owner warns of price rises due to the Budget – London Business News | Londonlovesbusiness.com

Mitchells & Butlers who owns Toby Carvery has warned they will have to increase their prices for customers as the Autumn Budget will increase their costs by around £100 million in 2025.

The group who owns All Bar One said higher wage costs is “by far the most significant increase” because of Labour’s Budget in October.

M&B told PA news agency said they are facing £23 million in extra costs annually due to the rise in minimum wage and employer’s national insurance contributions.

Chief executive Phil Urban said the group’s costs will soar by 5% or £100 million in 2024/25, warning that by spring prices will rise, he added, “we’ll probably have to go harder to cover the latest cost increases.”

M&B added, “In the year ahead, the main uncertainties facing the group are considered to be the maintenance of sales growth in the face of pressure on consumer spending power, and the rate of cost inflation.

“The outlook for these is uncertain and will depend on a number of factors, including consumer confidence, global political developments, supply chain disruptions and government policies.”