HMV and John Lewis Partnership on Thursday joined the long list of companies warning over the impact of employer national insurance contribution (NIC) hikes in last month’s Budget.
HMV owner Doug Putman warned 2025 was unlikely to see the retailer open any new stores, against plans for between five and 10 previously.
John Lewis Partnership boss Nish Kankiwal took aim at chancellor Rachel Reeves's Budget in the meantime, dubbing the hike a "two-handed grab".
Reeves last month announced employer NICs would rise to 15% on salaries above £5,000, against 13.8% on those over £9,100 currently.
“We would love to continue to open stores, but I think obviously with the Budget, there are some worries and some concerns,” Putman said in an interview with The Telegraph.
“I would be surprised if we could find a way to get through this without cutting jobs,” he also told The Guardian, adding staff typically taken on after Christmas recruitment drives may not get the opportunity this year.
The John Lewis and Waitrose owner separately warned of “tens of millions” in extra costs from next year.
The comments add to backlash against the Budget from the retail sector, including Sainsbury’s, Wetherspoons and M&S, with Royal Mail's owner and Mitie also among firms in other sectors pointing to mounting costs.