The cost of electrical gadgets and devices could soar as the boss of Currys warns that price rises are inevitable after Labour’s National Insurance hike.
The electrical goods retailer is facing extra costs of £32 million because of the changes in tax and government policy announced in the autumn Budget.
The company said it had only planned for about half that amount with boss Alex Baldock saying it will ‘depress investment and hiring’ plans.
Currys said it predicts £21 million in extra costs linked to National Insurance and the minimum wage, a further £9 million in costs passed through from partner businesses and an extra £2 million in business rates costs.
It comes following the Chancellor Rachel Reeves‘ decision to raise employers’ National Insurance to 15pc from next spring.
Supermarkets such as Sainsbury’s and Marks and Spencer have already voiced fears the tax bomb Budget would result in higher costs for customers.
While Wetherspoon chairman Tim Martin warned ‘all hospitality businesses, we believe, plan to increase prices, as a result‘.
Currys group chief executive Mr Baldock said they still expect to grow profits this financial year ‘despite new and unwelcome headwinds from UK government policy’.
The cost of electrical gadgets and devices could soar after the boss of Currys warned that price rises are inevitable after Labour’s National Insurance hike
The company said it had only planned for about half that amount with boss Alex Baldock saying it will ‘depress investment and hiring’ plans
The electrical goods retailer is facing extra costs of £32 million because of the changes in tax and government policy announced in the autumn Budget
He added: ‘These will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable.’
The electronics and white goods retailer revealed that group revenues increased by 1pc to £3.92 billion for the half-year to October 26, compared with the same period a year earlier.
Currys, which runs 715 stores, said ‘strong’ sales in the UK helped to offset a modest decline in its Nordics business.
UK like-for-like revenues increased by 5pc, with total revenues climbing to £2.34 billion in the region.
The group also revealed that it reduced its pre-tax loss for the half-year to £10 million, from a £44 million pre-tax loss a year earlier.
It has said trading is in line with expectations in the run up to Christmas amid strong demand for AI-related products.
Mr Baldock said: ‘We were well prepared for our peak trading period, with healthy stock and market-beating, best-ever deals that show our unmatched importance to suppliers.
It comes following Chancellor Rachel Reeves’ decision to raise employers’ National Insurance to 15pc from next spring
‘We’re trading in line with expectations. One highlight is rising demand for AI laptops, where we enjoy over 75pc market share in the UK.’
Last month, Wetherspoon boss Mr Martin said his pub chain’s tax and business costs are expected to increase by about £60 million over the next tax year.
This will include an estimated 67pc increase in National Insurance Contributions, which was raised by 1.2p from 13.8pc to 15pc, while the starting threshold was lowered from £9,100 to £5,000.
‘Wetherspoon will, as always, make every attempt to stay as competitive as possible,’ he said.