Major UK retailers have warned that rising costs and tax increases from the Budget will lead to job losses, shop closures, and price hikes.
In a letter to Chancellor Rachel Reeves, 79 signatories, including the British Retail Consortium (BRC), urged the government to reconsider measures they say will add £7 billion in costs next year.
From April next year, businesses face higher National Insurance Contributions (NICs), with rates rising from 13.8% to 15% and thresholds lowered.
This, combined with a minimum wage increase, will cost retailers £5 billion annually, according to the BRC. A packaging levy, starting in 2025, is expected to add another £2 billion.
Retailers, including Tesco, Sainsbury and Next, argue these changes will hurt profit margins and drive inflation.
The government defends the measures as vital for funding public services. However, business leaders are calling for phased implementation of tax changes and relief on business rates.