Retail Leaders Warn of Job Cuts Due to UK Budget Tax Increases

Retailers express concerns over increased National Insurance contributions, predicting higher prices and job losses.

The British Retail Consortium, representing major retailers like Tesco and Sainsbury's, has issued a letter to Chancellor Rachel Reeves warning of inevitable job losses and price hikes due to increased employer National Insurance contributions.
Prime Minister Keir Starmer defends the budget changes as necessary to stabilize the economy and address a £22 billion fiscal deficit, despite criticism from retailers.
Bank of England Governor Andrew Bailey acknowledges the risk of job cuts in the retail sector but supports the government's decision to rewrite fiscal rules for increased investment.
Retailers are particularly concerned about the sudden lowering of the National Insurance threshold and the impact on businesses employing low-wage, part-time staff.
The government maintains that over half of employers will see no change or a reduction in their National Insurance bills, aiming to protect workers' payslips from higher taxes.