Chancellor of the Exchequer Rachel Reeves leaves 11 Downing Street, London, with her ministerial red box before delivering her Budget in the Houses of Parliament, October 30, 2024
RETAIL and construction giants have warned that increased costs stemming from Labour’s Budget will be passed on to customers.
Marks & Spencer (M&S) boss Stuart Machin said the company would take a £60 million hit from a rise in taxes paid by employers.
He claimed that the retail chain would do “everything we can” to avoid passing on the extra costs to consumers, while adding that he could not rule out price rises, with an increase in the national minimum wage also adding to M&S costs.
The boss of Primark’s parent company said on Tuesday that he felt “the weight of tax rises” was falling on the high street, complaining that the company’s National Insurance bill will rise by “tens of millions” of pounds.
Housebuilder Persimmon also spoke of “seeing signs” of increases in construction costs in 2025, in part pushed up by the tax rises.
Chancellor Rachel Reeves said her Budget last week had met the government’s promise not to increase taxes for “working people.”
Among the measures aimed at raising £40 billion a year to boost investment in schools, hospitals, transport and housing was an increase in the rate of employer National Insurance contributions from next April.
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