Retailers Warn of Job Losses, Price Hikes in Budget

Over 70 major UK retailers, including Tesco and Amazon, have warned that recent changes in national insurance contributions announced in Chancellor Rachel Reeves' Budget could lead to significant job losses and price increases. The Retail Consortium estimates that these changes, alongside increased packaging levies and minimum wage hikes, could impose an additional £7 billion burden on businesses. They argue that the cumulative cost of these measures makes it impossible for retailers to absorb the expenses without passing them onto consumers, resulting in higher inflation and potential shop closures. The retailers request a phased implementation of the national insurance changes and a delay in the packaging levy to allow businesses to adjust. In response, the Treasury maintains that over half of employers will experience a reduction or no change in their national insurance bills, emphasizing the need for these reforms to support public services. The economic impact of these decisions is being closely monitored by the Bank of England.