The letter continued: “For any retailer, large or small, it will not be possible to absorb such significant cost increases over such a short timescale. The effect will be to increase inflation, slow pay growth, cause shop closures and reduce jobs, especially at the entry level. This will impact high streets and customers right across the country.”
It comes amid growing friction between business leaders and the new Government. During the election campaign, Labour had sought to position itself as a pro-business party.
However, since taking power it has attracted criticism from some of the UK’s leading business groups.
Earlier this month, UKHospitality branded the Chancellor’s National Insurance changes as “regressive”, saying they would force restaurants and pubs to close within the year.