Tesco is facing a £1 billion increase in its national insurance bill this parliament, The Sunday Times can reveal, as 200 business leaders call on Rachel Reeves to water down the tax increase.
The costs facing the supermarket, Britain’s biggest private sector employer, are the latest illustration of the potential impact of the chancellor’s maiden budget.
It adds to the pressure on Reeves to rethink her plans to raise £25 billion through the rise in employer national insurance contributions (NICs), which is expected to lead to job cuts and price increases.
Supermarkets and restaurant chains, which employ large numbers of lower-paid workers, are being particularly hard hit.
Rachel Reeves has raised the rate of NICs and lowered the threshold at which they become payable
SUNDAY TIMES PHOTOGRAPHER RICHARD POHLE
Last week, the bosses of Sainsbury’s, Asda and Morrisons detailed the rises they are facing, which add up