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.
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 Government’s NIC changes couldn’t come at a worse time for retailers. Our SmartMatch employment data is already showing concerning trends in business confidence, with full-time employment growth at SMEs having halved in the last 12 months.
Adding billions in new payroll costs to a sector operating on razor-thin 3-5% margins isn’t just short-sighted – it’s potentially devastating for entry-level jobs, which are the lifeblood of retail. While the Government talks about ‘difficult choices,’ they’re effectively forcing retailers to make even harder ones: between raising prices during a cost-of-living crisis or cutting the very jobs that often give young people their first step into the workforce.
