Tesco has warned they will be taking a £1 billion hit over the next four years as Labour has increased National Insurance Contributions by 12 percentage points in the Autumn Budget.
The supermarket giant employs some 300,000 workers and employers from April 2026 will be hit a NI rate of 15% for salaries over £5,000 up from the current rates of 13.8% on wages over £9,100.
Morgan Stanely analysts say Tesco will pay roughly £250 million in the NI rise, and the Chancellor has received calls from some 200 business leaders to decrease the tax hike.
Rachel Reeves has been warned that businesses have “grave fears” as they are facing almost £14 billion in further costs.
Over the course of this parliament Sainsbury’s, Morrison and Asda are all facing a combined £1.3 billion in higher costs.
Sainsbury’s chief executive Simon Robertshas issued a warning to the government and consumers that they face higher food costs as a result of the Chancellor’s Budget.
Asda’s chairman Lord Rose warned that Labour’s changes will “hit businesses hard and would be inflationary to a degree.”
A Treasury spokesman said, “More than half of employers will either see a cut or no change in their national insurance bills, and to support the hospitality industry we’re permanently cutting business rates for every shop on the high street from 2026 alongside a 40% relief on business rates bills next year for thousands of premises.”
Mel Stride the Shadow Chancellor said, “It is unacceptable that Labour are withholding this critical analysis.”
