Almost eighty retail leaders have united in an un-precedented move to address rising business costs. The group which includes bosses from Tesco‚ Marks & Spencer‚ and Sainsburyʼs sent a direct message to finance minister Rachel Reeves (expressing deep worries about recent budget changes)
The budget announced this fall brings several cost-related challenges:
- Higher employer National Insurance payments going up to 15%
- Lower payment threshold dropping to £5‚000
- Minimum wage boost of 6.7%
- New packaging fees implementation
- Business rates adjustments
The retail sector – which gives jobs to 3 million people directly and supports 2‚7 million more in its supply chain; faces a massive £7bn yearly cost increase by early-25. Prime Minister Keir Starmer stays firm on these changes saying he would “defend them all day long“
The retail bosses pointed out that such quick-paced changes will push prices up and slow-down wage growth. Theyʼre asking for a more step-by-step approach to the new rules implementation‚ especially regarding National Insurance thresholds and packaging fees
The letter signed by leaders of Next‚ Asda‚ Morrisons‚ Kingfisher‚ Amazon UK‚ and Boots seeks a sit-down with the finance minister to find better ways forward. They emphasize that its impossible to handle such big cost jumps in a short time-frame without negative effects on both business and customers