UK Retailers Warn of Job Losses, Price Hikes

UK retailers, including major players like Tesco, Sainsbury's, and Amazon, are voicing serious concerns over the government's recent budget measures, specifically the increase in National Insurance Contributions (NICs) from 13.8% to 15%. In a letter signed by over 70 retail leaders, they warned that this substantial hike could result in shop closures, job losses, and inevitable price increases, with a projected cumulative cost of £7 billion annually for the sector. The British Retail Consortium (BRC) highlighted that these changes will exacerbate inflation and threaten entry-level employment, particularly affecting approximately three million retail workers directly. While Chancellor Rachel Reeves defended the decision as necessary for public service funding, retailers argue that the speed and scale of these cost increases are unsustainable. They called for urgent discussions with the Treasury to adjust the implementation timelines of the NICs and other new costs to mitigate harmful effects on the industry and consumers. The situation underscores an ongoing tension between fiscal policy and its impact on the retail economy.