Retail Titans Warn UK Government: Budget Threatens Jobs and Prices

Britain's leading retailers have cautioned finance minister Rachel Reeves that the recent budget will lead to unavoidable price hikes and job reductions. The British Retail Consortium spearheaded the letter, signed by over 80 retail executives, urging a government rethink to mitigate these potential economic impacts.

Britain's retail giants have collectively sounded an alarm over the recent budget provisions, cautioning that the measures will inevitably result in higher consumer prices and job cuts. In a coordinated letter by the British Retail Consortium, over 80 CEOs from top brands, including Tesco, Sainsbury's, and Amazon UK, have appealed directly to finance minister Rachel Reeves.

The budget statement unveiled by the new Labour government outlines an increase in employers' National Insurance contributions and changes that will lower the threshold at which firms start financial contributions. It's further compounded by a hike in the minimum wage and potential future costs related to business rates and packaging levies, collectively foreseen to impose an additional £7 billion burden on the retail sector annually by 2025.

Prime Minister Keir Starmer's office defended the financial decisions, describing them as necessary to remedy the economic instability inherited from previous governance. The government spokesperson emphasized that such fiscal reforms are essential for long-term business prosperity despite immediate challenges.

(With inputs from agencies.)