Labour’s tax grab budget and broken promises on business rates mean price rises are inevitable, warns Currys boss

Labour’s tax grab budget and broken promises on business rates mean price rises are inevitable, warns Currys boss. by emily hawkins. updated:. currys boss alex baldock has warned that the budget will lead to ‘inevitable’ price rises and stifle job creation. and he attacked chancellor rachel reeves’ failure to tackle hated business rates, saying the government had broken promises to act. it came as pret a manger founder julian metcalfe described business rates as ‘mind-bogglingly expensive’. baldock said: ‘this is an unhelpful budget for jobs, prices, investment and growth.’. the comments come after reeves blindsided uk firms by hiking the employer rate of national insurance contributions (nics) from 13.8 per cent to 15 per cent and cutting the threshold for paying it from £9,100 to £5,000. currys was one of 81 retailers that wrote to the chancellor last month warning the change would result in fewer jobs, lower pay growth and shop closures. cost of living: currys boss alex baldock (pictured) said the october budget ‘will add cost quickly and materially, depress investment and hiring, boost automation and offshoring’. yesterday, as it published half-year results, currys said it was taking a £12million hit from the nics hike and £9million from an increase in the minimum wage announced at the budget. baldock said the changes ‘will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable’. and the ‘unwelcome’ measures have created a gloomier outlook for consumer confidence. ‘in the summer, we were looking at falling inflation, interest rates were expected to fall, consumer confidence was rising, and that progress has stalled.’. he added that labour’s business rates policies were ‘nothing of the kind’ of help needed and would hold back growth. business rates are a levy based on the value of a commercial property, meaning that shops pay a premium compared with online giants such as amazon. the chancellor has delayed the introduction of a new rates system until 2026 at the earliest. and under this shake-up, more than 3,000 large retail properties will pay more, according to property group colliers. the idea is to target warehouses used by online shopping giants, but it would also hit bricks-and-mortar supermarkets. metcalfe, one of britain’s best-known entrepreneurs, echoed the frustration on rates. in an interview with the mail, he said: ‘rates are more than rent in many places now – it’s criminal.’. retailers including kingfisher and hmv have backed the mail’s ‘save our high streets’ campaign to urge reforms. there are fears that 17,300 shops could close over the next decade without drastic action on rates. before the budget, firms urged the chancellor to extend covid-era aid and then make reforms. instead, she has slashed relief from a 75 per cent discount for all hospitality and retail rates bills to 40 per cent. at currys sales rose 1 per cent to £3.92billion for the six months to october 26, compared with the same period a year earlier.losses narrowed to £10million from £44million. shares rose 17.3 per cent, or 13.65p, to 92.65p. business rates woe. £220billion to be raised by tax over next six years. 6,000 stores closed in past five years. 17,300 stores could close over next decade without rates reform. 3,000 larger retail premises expected to pay more from 2026. diy investing platforms. aj bell. aj bell. easy investing and ready-made portfolios. hargreaves lansdown. hargreaves lansdown. free fund dealing and investment ideas. interactive investor. interactive investor. flat-fee investing from £4.99 per month. saxo. saxo. get £200 back in trading fees. trading 212. trading 212. free dealing and no account fee. affiliate links: if you take out a product this is money may earn a commission. these deals are chosen by our editorial team, as we think they are worth highlighting. this does not affect our editorial independence. compare the best investing account for you. share or comment on this article: labour’s tax grab budget and broken promises on business rates mean price rises are inevitable, warns currys boss. some links in this article may be affiliate links. if you click on them we may earn a small commission. that helps us fund this is money, and keep it free to use. we do not write articles to promote products. we do not allow any commercial relationship to affect our editorial independence. this article was originally published by a read the original article here.