LONDON, Nov. 19 (Xinhua) -- Some of the biggest British retailers have written to the government, warning the measures from last month's Budget could lead to job cuts and higher prices, local media reported on Tuesday.
In a letter to Chancellor Rachel Reeves, 79 signatories -- including prominent companies such as Tesco, Boots, Marks & Spencer, and Next -- highlighted concerns over an estimated 7 billion pounds (8.84 billion U.S. dollars) rise in annual costs following the Budget's implementation, according to The Guardian.
In the latest Budget, the chancellor announced a rise in employers' National Insurance (NI) contributions from 13.8 percent to 15 percent, effective April 2025. And the threshold at which employers begin paying NI for employees will be reduced from 9,100 to 5,000 pounds annually.
Also, the national minimum wage for full-time workers aged 21 and over will rise by 6.7 percent to 12.21 pounds an hour, while that for 18 to 20-year-olds will rise from 8.6 to 10 pounds an hour.
The letter organized by the industry body the British Retail Consortium (BRC) said, "absorbing the impact of the higher costs will mean higher prices for consumers, smaller pay rises, job cuts and store closures," reported The Guardian.
"For any retailer, large or small, it will not be possible to absorb such significant cost increases over such a short timescale," read the letter, calling for a discussion with the Treasury to address the industry's concerns. (1 pound =1.26 U.S. dollar) ■