66% of British retailers will raise prices in 2025 due to tax increases

You can find the original article on the Mitchell Charlesworth site here.

Two thirds of UK retailers are planning to raise their prices in response to the tax increases announced in the autumn budget, according to a survey conducted by the British Retail Consortium (BRC).

The trade body representing British retailers surveyed chief financial officers and finance directors at 52 major brands, and found that around half also plan to reduce staff hours and numbers at head offices and stores.

The plans reflect a general sense of pessimism in British retail, with over two thirds reporting feeling ‘pessimistic’ or ‘very pessimistic’ about trading conditions over the coming 12 months.

The increases to employer National Insurance Contributions, higher business rates, a rise in the national minimum wage and levies on packaging are all coming in from April, and it’s estimated the cost to the retail sector will be £7 billion per year. According to BRC Chief Executive Helen Dickinson, the majority of retailers will ‘have little choice but to raise prices in response.’

Retail finance chiefs expect shop price inflation to hit 2.2% in the second half of 2025, with food inflation reaching 2.4%, according to the survey.

The BRC survey also found that one third believed the increasing costs would lead to further use of automation by retailers.

If you’re a retailer or any other business concerned about the potential impact of the employer NI increase, the experienced team here at Warr & Co is here to help. We’ll explain everything you need to be aware of from April this year and help you to ensure your tax position is as efficient as possible.

To find out more about the accountancy and tax services we can provide your business get in touch today.