(qlmbusinessnews.com Thurs. 14th Nov, 2024) London, UK —
Retail and Hospitality Brace for Price Rises Amidst New Budget Tax Burden
The heads of JD Sports and pub chain Fuller's have warned that recent tax changes in the Chancellor’s Budget will lead to higher prices for UK consumers. Speaking to reporters, JD Sports chair Andy Higginson said that tax increases due from April, including a National Insurance (NI) rise, will directly affect shoppers as businesses pass these costs along. Simon Emeny, chief executive of Fuller's, cautioned that increased costs could mean higher pub prices within six months.
As outlined in the Budget, from April 2024, employers will face higher NI costs, paying 15% on salaries above £5,000, up from 13.8% on earnings over £9,100. With these additional expenses, many business leaders fear that the rise in operating costs will impact both retail and hospitality prices. Higginson urged the government to phase in these changes over a few years rather than implementing them all at once to avoid a significant inflation spike.
Despite the Budget aiming to generate £40 billion through tax hikes, with £25 billion expected from NI increases alone, it has sparked widespread concern among business leaders. Over 120 UK business figures, including Higginson, signed a letter supporting Labour’s economic policies, arguing that the current tax policy could hinder growth.
Mr. Emeny of Fuller's expressed concerns for the hospitality sector, which he said is still recovering from the effects of the COVID-19 pandemic. His company, which operates around 400 pubs and hotels, estimates that the combined costs of NI and minimum wage changes will add around £8 million to its expenses. While Fuller's posted a 21% profit increase for the six months to September, the chain remains cautious, with Emeny stressing that the hospitality sector may have little choice but to pass on these additional costs.
The average price of a pint in the UK, which was £4.47 as of September, may rise further, according to the British Beer and Pub Association, with some London pub owners indicating a potential 40p increase. Businesses face a delicate balance between maintaining profitability and managing affordability for consumers, particularly in the face of uncertain economic growth.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
