UK’s largest retailers warn job losses is ‘inevitable’ after Labour’s Budget – London Business News | Londonlovesbusiness.com

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” which comes after the Chancellor announces a £25.7 billion change to employer’s national insurance which will increase the tax threshold for companies.

The British Retail Consortium who arranged the letter was signed by the likes of Tesco, Asda, Sainsbury’s, Aldi, Amazon, Boots, B&Q, Greggs, JD Sports, Next, Primark, Mark & Spencer and Currys.

The letter to the Chancellor says, “We appreciate Government’s focus on improving the fiscal situation and investing in public services; we also recognise the role businesses have in supporting this.

“But the sheer scale of new costs and the speed with which they occur create a cumulative burden that will make job losses inevitable, and higher prices a certainty.”

The BRC are saying they will “welcome” meeting with the Chancellor to recommend some changes such as phasing in the introduction of national insurance lower earning thresholds.

The letter continues, “By adjusting the timings of some of these changes, the Government would give businesses time to adjust and greatly mitigate their harmful effects on high streets and consumers.”

Amid rising  criticism the Prime Minister Sir Keir Starmer defended the Budget’s “tough” fiscal decisions.