High street chains warn Chancellor of £7bn cost from Budget

Major retailers express concerns over potential job losses and price rises

DOZENS of high street chains, including Boots, Next, and Tesco, have raised alarms to Chancellor Rachel Reeves about the potential impact of her Budget, estimating a staggering £7 billion cost to retailers. In a letter signed by 79 prominent businesses, concerns were voiced about the challenges of absorbing National Insurance hikes and the living wage increase, which could lead to job losses and higher prices for consumers.

Retail giants unite against Budget's "harmful effect"

The letter, signed by key players such as Amazon, Aldi, Morrisons, and JD Sports, criticized the Budget for its potential negative consequences on both customers and the vitality of high streets. The retailers emphasized that absorbing such significant cost increases in a short timeframe would inevitably lead to inflation, slower pay growth, shop closures, and job cuts, particularly at entry-level positions.

Chancellor urged to rethink tax raid by retail industry

Despite Chancellor Reeves suggesting that large companies could offset the impact through cost-cutting measures and reduced profits, the letter refuted this claim, stating that the scale and speed of the cost increases would make job losses and price hikes unavoidable. The retail sector, which directly employs over 3 million people in Britain and contributes significantly to the economy, highlighted the challenges posed by the Budget's provisions.

Treasury defends Budget decisions amid industry backlash

In response to the retailers' concerns, a Treasury spokesman defended the Budget, citing the need to address fiscal challenges and boost economic stability. The spokesman emphasized the government's commitment to supporting economic growth, investment, and the healthcare sector, despite the criticism from the retail industry.