The 81 businesses warning to slash jobs as Reeves’s ‘heartbreaking’ budget takes hold | Personal Finance | Finance

A coalition of some the UK’s largest retailers, including Tesco, Amazon, John Lewis, and Aldi, has warned that Labour’s Autumn Budget could lead to widespread job cuts, higher prices, and shop closures.

In a joint letter to Chancellor Rachel Reeves, the group criticised the tax hikes and other measures as creating a “cumulative burden” that could devastate the retail sector.

Representing 81 major businesses, the British Retail Consortium (BRC) estimates that new costs from the Autumn Budget, combined with policies already in motion, will add over £7billion annually to a sector operating on slim profit margins of just 3% to 5%.

Starting in April, larger businesses will face increased employer National Insurance Contributions (NICs), with thresholds dropping from £9,100 to £5,000 and rates rising from 13.8% to 15%. According to the BRC, this change will cost British retailers £2.33billion a year.

Retailers will also have to manage a £2.73billion increase from the minimum wage hike next year, as well as a £2billion cost tied to a new packaging levy taking effect in October 2025.

These combined measures are expected to push up inflation, slow wage growth, and lead to job losses, particularly for entry-level positions.

In their letter, the retailers stated: “The sheer scale of new costs and the speed with which they occur create a cumulative burden that will make job losses inevitable, and higher prices a certainty.”

The hospitality sector, already grappling with rising costs, also predicts severe consequences from the budget measures. Owen Morgan, co-founder of the 44 Restaurant Group, described the plans as “anti-business,” “anti-growth,” and “short-sighted.”

He told The Times: “As founders, we have spent the last few weeks literally working 24/7 trying to evaluate, forecast, adjust, and plan how to save the business because of the budget.

“For a company like ours, staunchly family-run and already having to tread water and consolidate after the events of the last four years, it’s heartbreaking.”

He added: “Rather than opening their ears and listening to experienced people, they have done the opposite and hammered us. We will be employing fewer people. Sadly, there is no other option.”

The minimum wage increase, meanwhile, has been largely welcomed by unions, particularly for its benefits to younger workers and apprentices.

The Government has defended its tax increases, emphasising their necessity to protect public services. A Treasury spokesperson stated that “difficult choices” were necessary to “fix the foundations of the country,”.

Meanwhile one union criticised the letter. Nadine Houghton, GMB Union national officer, said larger businesses “pleading poverty” was “utterly pathetic”.

She added: “Most of these companies’ fortunes are already subsidised by the taxpayer. They pay very low wages which then have to be topped up by in-work benefits. It’s only right that they should now contribute a bit more to rebuilding our country.”

However, Bank of England Governor Andrew Bailey acknowledged the retailers’ concerns, cautioning it was “right” to say jobs could be affected.

The 81 companies that signed the letter include:

  1. Aldi
  2. All Saints
  3. Amazon
  4. Asda
  5. Associated Independent Stores
  6. B&Q
  7. Barker and Stonehouse
  8. Bensons for Beds
  9. Booksellers Association
  10. Boots UK & ROI
  11. British Heart Foundation
  12. British Retail Consortium
  13. Burberry
  14. Card Factory
  15. CJ Lang & Son
  16. Concept Living
  17. Currys
  18. Decathlon
  19. Dr Martens
  20. Dobbies Garden Centres
  21. Dune Group
  22. EE Booth & Co
  23. Fenwick
  24. Fishpools
  25. Footasylum
  26. Fraser Hart
  27. Greggs
  28. H&M
  29. HMV
  30. Holland & Barrett
  31. Horticultural Trades Association
  32. JD Sports
  33. John Lewis Partnership
  34. Kingfisher
  35. Leon Restaurants
  36. Lidl GB
  37. LK Bennett
  38. Majestic Wine Warehouse
  39. Mamas & Papas
  40. MandM Direct
  41. Marks and Spencer
  42. Monsoon Accessorize
  43. Morrisons
  44. Mountain Warehouse
  45. Micounties Co-operative
  46. Musgrave Group
  47. Music Industries Association
  48. N Brown
  49. New Look
  50. Next
  51. Ocado
  52. Oliver Bonas
  53. One O One Convenience Stores
  54. Pets at Home Group
  55. Poundland
  56. Primark
  57. Radley+Co
  58. Reiss
  59. Richer Sounds
  60. Rigby & Peller
  61. River Island
  62. Sainsbury’s
  63. Scottish Grocers’ Federation
  64. Scottish Midland Co-operative Society
  65. Screwfix
  66. Schuh
  67. Seasalt
  68. Spar UK
  69. Specsavers
  70. Superdry
  71. Swarvoksi
  72. Tesco
  73. The Perfume Shop
  74. The House of Bruar
  75. The Original Factory Shop
  76. The Paint Shed
  77. The Southern Co-operative
  78. The Works
  79. Topps Tiles
  80. Whittard of Chelsea
  81. Wickes Group.

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