Bailey Supports Retailers' Job Cut Warnings

Bank of England Governor Andrew Bailey has backed warnings from retailers about potential job losses due to tax increases in Chancellor Rachel Reeves's recent budget. Nearly 80 retail leaders expressed concerns that rising employer National Insurance contributions and a lowered threshold would lead to significant layoffs and higher consumer prices, with Bailey acknowledging that the actual job cuts could exceed government projections. While the government defends its budgetary decisions as necessary for economic stability, some industry insiders suggest that the Treasury may have attempted to dissuade retailers from voicing their concerns. Critics, including trade unions, argue that large retailers should contribute more to public services, given their previous tax advantages and low wage practices. Bailey has also advocated for maintaining free trade relationships instead of choosing between the US and EU amid potential tariffs from the Trump administration. Overall, the situation highlights the ongoing tension between fiscal policy and its impact on employment in the retail sector.