LONDON: Most retailers plan to raise prices to cover higher taxes in the British government’s first budget, a lobby group’s survey has found.
About two-thirds of chief financial officers warned they will pass on costs from the increase to employer national insurance contributions – a payroll tax – to consumers, the British Retail Consortium (BRC) said in research published yesterday.
More than half said they will reduce staff hours including overtime, while 46% said they will reduce store headcount, according to the BRC.
The BRC surveyed 52 large retailers in the three weeks to Dec 9.
According to the trade association, 70% of respondents said they were “pessimistic” or “very pessimistic” about trading conditions.
The survey was published hours before Britain’s latest inflation data, which will be closely watched given the market turmoil of recent days.
A sharp rise in gilt yields and a slump in the pound risk putting chancellor of the exchequer Rachel Reeves in breach of her own fiscal rules, as concerns grow over Britain’s debt pile, a moribund economy and stubborn price pressure. — Bloomberg
