London, UK: Over 70 retailers, including Tesco, Asda and Sainsbury’s, have echoed the Cold Chain Federation’s concerns that budget changes will lead to price hikes.
They have made the warning in an open letter, sent by the British Retail Consortium, to Chancellor Rachel Reeves. The companies said that the huge National Insurance Contribution (NIC) increases, together with packaging levies and increases to the national minimum wage, could cost retailers more than £7bn a year. Other signatories to the letter include the bosses of Aldi, Lidl, and Morrisons.
‘We appreciate Government’s focus on improving the fiscal situation and investing in public services; we also recognise the role businesses have in supporting this,’ the letter said.
‘But, the sheer scale of new costs and the speed with which they occur create a cumulative burden that will make job losses inevitable, and higher prices a certainty.’
The group called for changes, including phasing the reduction in the NICs lower earnings threshold, delaying timelines for packing levy implementations and revisiting business rates proposals announced in the budget.
“By adjusting the timings of some of these changes, the Government would give businesses time to adjust and greatly mitigate their harmful effects on high streets and consumers,” it read.
The Cold Chain Federation had earlier warned that there would be a significant in the cost of supplying vital temperature-controlled food and drugs due to the NIC increases.
Coupled with the news of supermarkets facing a staggering £2.5bn increase in NIC costs over the next five years, this will likely hit consumers’ wallets, the federation said.
