Firms warn over impact of rising business costs from Government policies
Major UK retailers pile pressure on Rachel Reeves
- Chancellor Rachel Reeves is facing pressure over increasing business costs, with major companies like Currys, JD Wetherspoon, and Morrisons highlighting the impact of tax hikes and policy measures.
- JD Wetherspoon warned of lower profits due to a £45 million hit from surging costs, including energy, wages, and business rates, despite robust Christmas trading.
- Currys criticised government policies, stating that cost increases and the upcoming Employment Rights Bill are negatively affecting hiring and economic growth, leading to inevitable offshoring of jobs.
- Morrisons reported a £200 million surge in costs from 2024 budget measures, such as national insurance and minimum wage rises, and is cutting expenses by not replacing departing staff.
- Industry bodies like the CBI and business leaders are urging the government to reduce the cost of doing business to stimulate investment and growth, while Rachel Reeves maintains an optimistic outlook for the economy.