Sainsbury’s boss Simon Roberts has ramped up pressure on Chancellor Rachel Reeves by warned customers will be hit by higher inflation because of extra costs, including the national insurance hike in the Budget
The boss of supermarket giant Sainsbury’s warned cost hikes in last week’s Budget would feed through to higher prices.
Chief executive Simon Roberts said Labour Chancellor Rachel Reeves’ announced jump in the rate of employers’ national insurance – and lowering of the salary threshold on which it is paid – would add £140million to its tax bill.
“We’ll do everything we can to mitigate this, but given the margins of the industry – this is a 3% margin industry – there just isn’t the capacity to absorb this level of unexpected cost inflation that is coming at us as fast as it is,” he said.
He warned this “unexpected barrage of costs” was expected to contribute to “feed into a higher level of inflation” for shoppers. There was “already too much pressure in the pipe”, Roberts added, as he urged the government to bring forward a shake-up of business rates that is not due to happen until 2026. He also called for the Government to “really listen” to concerns from British farmers, who have fiercely criticised Ms Reeves’ decision to cut the inheritance tax relief on agricultural assets.
Sainsbury’s joins a host of other big firms this week – including Marks & Spencer and JD Wetherspoon – that have also highlighted big hits to their tax bills. It came as Sainsbury’s announced revenues increased by 2.3% to £17.2billion in the six months to mid-September. Profits rose 4.7% to £356m.