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More than half of businesses plan to raise prices after Labour’s £25bn National Insurance raid on employers, with one of Britain’s biggest retailers calling the Budget a “punch in the face”. the face.”
A Bank of England survey of finance chiefs at 2,000 companies found that 54 per cent of firms are likely to increase prices, and the same proportion also expect to employ fewer staff.
The figures also revealed that 38 per cent would pay lower wages and 59 per cent would accept some of the impact in the form of lower profits.
Mike Ashley’s Frasers Group was the latest firm to condemn Chancellor Rachel Reeves’ total £40bn tax rises.
Michael Murray, Ashley’s son-in-law and chief executive of Frasers, said: “Not only are they going to add a minimum of £50m to our costs next year, but consumer confidence has also been destroyed, so It really was like a punch in the face.
The retailer cut its annual profit guidance by £25m to between £550m and £600m, sending its shares down 10.7 per cent, or 79p, to 662p.
A Bank of England survey of finance chiefs at 2,000 companies found that 54% of firms are likely to increase prices, and the same proportion also expect to employ fewer staff.
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