New budget measure to cost major supermarket more than £100m and cause inflation to rise - CEO says

Measures announced successful the fund volition outgo 1 of the UK's biggest supermarket chains £140m, its main enforcement said.

The emergence successful employer's nationalist security contributions, announced by Chancellor Rachel Reeves successful her fund past week, volition outgo Sainsbury's £140m from April, CEO Simon Roberts said.

No terms was enactment connected the emergence of the nationalist minimum wage but Mr Roberts said the caller measures would origin inflation - the complaint of wide terms rises - to spell up.

The supermarket chain, the UK's second-largest by marketplace share, does not person the "capacity to absorb" a "barrage of costs", Mr Roberts said truthful customers volition person to wage more.

Money blog: House prices deed grounds high

He pointed to investigation from autarkic forecaster the Office for Budget Responsibility (OBR) which said Ms Reeves's announcements would cause ostentation to beryllium higher than primitively predicted, saying it was "difficult to disagree with".

Mr Roberts said: "This interaction connected nationalist security was unexpected and is coming successful fast, it volition person a precise important impact, it volition interaction our costs base... and our suppliers' outgo base."

When asked to quantify the inflationary effect of minimum wage rises and upped nationalist security contributions Mr Roberts said ostentation was already connected the up, there's "a batch of unit successful the pipeline....there's unit successful the strategy successful ostentation already".

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What had been expected, Mr Roberts said, was a simplification successful concern rates: "Business rates volition spell up this twelvemonth I surely didn't expect them to spell up adjacent twelvemonth I expected them to spell down".

What does it mean for staff?

When asked what the interaction could beryllium connected the Sainsbury's workforce Mr Roberts said the institution had "difficult decisions to instrumentality arsenic a result" but it was "too aboriginal to beryllium specific".

Earlier this week JD Wetherspoon, which owns much than 1,000 pubs crossed the UK, said the fund volition adhd £60m successful costs adjacent year, portion M&S expects to instrumentality a £120m hit.

Changing habits

Also announced by Sainsbury's connected Thursday greeting was the instrumentality of the "big play shop" arsenic radical are going backmost to the office.

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As a effect of higher edifice prices radical are besides eating astatine location more, Mr Roberts added.