The Government's plans in Chancellor Rachel Reeves' Autumn Budget have prompted some high street retailers to warn customers of possible price increases starting in April 2025.
The minimum wage for adults is expected to increase by 77p to £12.31 from April 1, while the employer national insurance rate is expected to rise by 1.2 per cent to 15 per cent starting on April 6.
Here are all the businesses that have declared they may be increasing prices.
M&S
Due to the announced changes, M&S bosses said it is one of the retailers that will be paying a larger tax burden this year.
In a statement to the National World, CEO Stuart Machin said: “I want to pass on as little as possible of that to our customers. It’s not easy, but I really want us to hold our prices as much as we can.”
Sainsbury’s
Sainsbury's warned that it would lose an additional £140m as a result of the budget, which could impact its prices.
Simon Roberts, the company's CEO, said that in order to lessen the impact on consumers, the chain will have to co-operate with its suppliers.
He told The Grocer: “Suppliers have got costs coming at them as well, of course, given all of the changes in national insurance coming.
“We’ll be working really closely to make sure that, between us, we find the best answers we can and we continue to give customers the best value that we possibly can.”
Next
Next has also warned that its costs will rise by £67m, part of which it will have to pass on to customers.
The shop stated that, due to the increase in employer national insurance contributions, it will have to impose an “unwelcome” one per cent pricing hike.
It cautioned that “as employer tax increases, and their potential impact on prices and employment, begin to filter through in the economy”, sales growth will decline significantly over the coming year.
Greggs
The largest bakery business in the UK stated that it had to pass along part of its increased expenses to its customers.
About two-thirds of the chain's workers received a pay increase of about six per cent at the beginning of 2025, according to CEO Roisin Currie.
Although this is good for workers, she said it means some products will be more expensive. For instance, the average price of the chain's sausage rolls has increased by 5p to £1.30, albeit this will differ depending on where you live in the nation.
Which retailers signed the open letter to Rachel Reeves?
More than 70 companies have voiced their concerns about the budget revisions in an open letter to Ms Reeves late last year, contending that the industry may lose more than £7bn a year as a result of the combined measures.
The letter reads: “We appreciate the Government’s commitment to improving public finances and investing in public services, and we recognise the vital role businesses play in supporting these efforts.
“However, the scale and speed of these new costs create a cumulative burden that will inevitably lead to job losses and higher prices.”
Here’s the full list of the open letter’s signatories:
