Upcoming tax rises will be “too much to bear” for Britain’s businesses, the boss of JD Sports has warned, as industry grapples with the impending increases in costs announced in the Budget.
Andrew Higginson, who is chairman of high street chin as well as the British Retail Consortium, said that consumers face “significant inflation” unless Chancellor Rachel Reeves agrees to gradually phase in her £40bn of tax increases.
He said the impending 6.7pc increase in the National Living Wage to £12.21 per hour from April would be negated by retailers being forced to put up prices.
Companies are preparing for a £25bn increase in employer National Insurance contributions, which will rise from 13.8pc to 15pc.
Mr Higginson told BBC Radio 4’s Today programme: “I think it’s the scale of all of the increases that have come at once.
“You’ve seen a bill for retail across National Insurance, minimum wage, the changes to rates which means rates are going up despite the fact we were promised that rates would be coming down for retail, you’re seeing a £5bn a year hit and there’s only two ways to deal with that.
“One is to cut back on investment, cut back on recruitment, cut back on headcount, cut back on jobs.
“Secondly, to put up prices and the one thing that will guarantee is that we will see inflation in retail prices coming from the things that were announced.”
He added: “It is all very well giving people a 6.5pc pay rise through the national minimum wage but if at the same time inflation goes through the roof, it’s not a real increase, is it?”
He said: “I’m guaranteeing you today that if these go through as they are without any sort of feathering, we are going to see significant inflation in prices.
“The cumulative effect of all these changes is too much for industry to bear in the sense of them being able to get on and invest and grow.”
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