Next CEO Warns of Job Market Challenges

Next's CEO, Lord Simon Wolfson, has expressed concerns that recent tax changes and National Insurance (NI) hikes could significantly hinder entry-level job opportunities. The UK government's October Budget reduced the threshold for NI payments from £9,100 to £5,000 and increased the rate for employers, which he argues will disproportionately impact lower-paid workers. Wolfson urged the government to stagger these changes to avoid immediate job cuts or reduced hours. He highlighted that Next's wage bill will increase by £70 million, potentially leading to fewer employee hours or cuts in workforce numbers. Other retailers, such as M&S and Tesco, are also preparing for financial strain, with M&S facing a £120 million wage bill hit. Wolfson emphasized that the ramifications of these changes extend beyond retail, posing a broader economic concern as they complicate workforce entry for young and low-income workers.