Halfords Considers Price Hikes After £23 Million Budget Cost Increase

The UK retailer warns of rising costs due to national insurance and minimum wage increases, while urging government action on business support.

Halfords faces a £23 million increase in labor costs following the UK government's autumn budget, driven by higher national insurance contributions and a minimum wage rise.
The company has indicated it may pass these increased costs onto customers, particularly in its Autocentres servicing business where pricing power is stronger.
Halfords reported a 23.3% drop in pre-tax profits for the first half of the fiscal year, with revenues slightly declining to £864.8 million.
CEO Graham Stapleton has called on the government to accelerate reforms to the Apprenticeship Levy to help businesses offset rising costs and upskill their workforce.
Despite maintaining its full-year guidance, Halfords warns of an uncertain trading outlook due to cost pressures and shifting consumer behavior.