Sainsbury's and M&S warn Budget changes may push up prices

Published On Nov 7, 2024, 5:56 AM

The UK government has announced significant increases in National Insurance (NI) tax for employers, set to take effect next April. Major firms like Sainsbury's, Marks & Spencer, and BT are warning that these tax rises could lead to increased prices for consumers. Sainsbury's predicts a £140 million hit from the changes, while BT expects a £100 million impact, primarily from the NI changes. Other companies in the hospitality sector, such as Wetherspoons, also indicated they would raise prices. There are concerns that these cost increases will lead to higher inflation and a burden on employees, particularly impacting lower-paid workers.