Blow for drivers as major retailer issues price hike warning after Budget tax hit

A MAJOR retailer has warned that it whitethorn request to propulsion up prices astatine its repair garages aft Labour’s taxation raid successful the Budget past month.

The concatenation said that the outgo implications of next April’s summation successful nationalist insurance contributions (NICs) and the minimum wage summation were “particularly acute”.

Halfords has much than 12,000 employees truthful the Budget changes volition nonstop its wage measure soaring by astir £23million.

It said lone astir £9million of the other costs were already included successful its plans for 2025-26 and mitigated.

As a effect it whitethorn request to “pass through” the higher outgo of wages to customers crossed its garages.

The radical said it would beryllium hard to afloat mitigate a single-year outgo summation of this size.

This volition beryllium peculiarly evident successful its retail business, wherever galore of its products and categories are add-ons oregon whitethorn beryllium large summons and important outgo has already been removed successful caller years.

The radical added: “We expect being capable to walk done wage inflation much easy successful the Autocentres business, wherever a greater proportionality of gross relates to services.”

But Greg Stapleton, main enforcement of Halfords, said that the retailer volition “work hard to mitigate these costs”.

He added: “The outgo implications from the caller UK Budget are peculiarly acute for a specializer retailer that provides adept proposal and assistance to customers, look to face.”

The news comes arsenic half-year results retired contiguous showed the company’s pre-tax profits fell 23.3% to £17.8million successful the six months to September 27.

Revenues besides dropped by 0.1%, with much hard retail trading offsetting maturation successful its Autocentres arm.

Meanwhile, profits slumped by 1.4% connected an underlying basis, to £21 million.

Halfords is calling connected the Government to assistance soften the fiscal stroke by overhauling the Apprenticeship Levy.

This levy is charged astatine 0.5% and is paid by ample employers with a wage measure of much than £3million.

Stapleton said: “We impulse the Government to see alternate ways of supporting businesses similar ours, including the acceleration of Apprenticeship Levy reform, which would assistance america to upskill existing colleagues and offset immoderate of the caller headwinds.”

Other retailers informing of rising costs

Halford’s announcement follows terms increases from galore different retailers and hospitality groups.

Yesterday Greggs’ brag Roisin Currie warned that prices could emergence aft the Budget tax changes.

She said the measures rolled retired by Chancellor Rachel Reeves would enactment unit connected prices, but it was apt to beryllium lone “pennies”.

Meanwhile, past week Lidl main Ryan McDonnell told The Sun that the tax raid had near the large supermarket with “tens of millions of pounds” successful further costs.

Bosses of large retailers including Asda, Primark, Sainsbury’s and M&S person besides issued akin terms warnings.

Asda president Stuart Rose said the summation would outgo the supermarket £100million, which would inevitably pb to terms increases.

He explained: "You cannot sorb £100milion of cost. We don’t person a magic money histrion successful Leeds.”

His informing followed comments by Sainsbury’s main enforcement Simon Roberts, who said the supermarket “didn’t person the capacity” to sorb this level of unexpected outgo inflation.

He said the National Insurance hike would outgo the concern £140million.

Meanwhile, Sainsbury’s is already looking to adjacent Argos sites to prevention money.

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