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It\u2019s been just over a month since Labour unveiled its first fiscal Budget since winning the General Election this year.<\/p>\n
Chancellor of the Exchequer Rachel Reeves’ Budget, which introduced measures including increased employer contributions to National Insurance, minimum wage rises and new packaging levies, was met with outrage by many business leaders – many of whom had been supportive of Labour during its election campaign.<\/p>\n
The British Retail Consortium (BRC) went so far as to compose an open letter to Reeves warning that jobs will be lost, stores will shut and prices will have to rise in the wake of her controversial first Budget.<\/p>\n
Over 70 retailers including Tesco, Sainsbury\u2019s, Next, Amazon, and Boots are signatories on the BRC\u2019s letter, which forecasts that the changes could raise the sector\u2019s costs by up to \u00a370bn per year.<\/p>\n
But a small but vocal minority of retail leaders have also come out in support of Labour\u2019s controversial Budget.<\/p>\n
So who\u2019s for and against Labour\u2019s inaugural, and controversial Budget? Retail Gazette has compiled the voices of support and dissent from retail\u2019s top brass so far.<\/p>\n
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Against<\/h3>\nAO World<\/h5>\n
The boss of the white goods specialist John Roberts slammed Labour\u2019s Budget. Speaking to The Sun, Roberts says: \u201cTrust them? I would be worried about trusting them to go out for half-a-dozen eggs.<\/p>\n
\u201cThey weren\u2019t talking of raising taxes when they were trying to get elected \u2014 and then suddenly everything changed.\u201d<\/p>\n
AO anticipated that Labour\u2019s hike in National Insurance contributions from employers would result in \u00a38m in costs for the retailer \u2013 which Roberts said would inevitability lead to inflation.<\/p>\n
\u201cIf you dramatically increase all the costs then prices will go up, as night follows day. They have to,\u201d Roberts added.<\/p>\n
The Entertainer<\/h5>\n
The Entertainer chief executive Andrew Murphy said the cost increases associated with changes announced in the Budget has \u201cchanged what we feel about our opportunities for growth and the viability of our own estate\u201d.<\/p>\n
While he has no plans for job cuts or store closures, Murphy told Retail Gazette that the toy retailer\u2019s expansion plans are now being reviewed.<\/p>\n
\u201cWe had at least six lined up for next year, arguably we could have got as far as 10. I don’t think there are 10 viable locations now because of the cost difference,\u201d he explained.<\/p>\n
\u201cIt’s not a straightforward answer, but I think the budget has reduced by at least half the number of viable locations that we would consider looking at.\u201d<\/p>\n
Frasers<\/h5>\n
Frasers chief executive Michael Murray described Labour\u2019s budget as \u201ca punch in the face\u201d that will be \u201cdevastating\u201d for retailers.<\/p>\n
Speaking to The Telegraph, Murray said: \u201cNot only are they going to add an additional minimum of \u00a350m of our costs next year, but consumer confidence has also been destroyed, so it really has been like a punch in the face.\u201d<\/p>\n
HMV<\/h5>\n
HMV owner Doug Putman said the music chain had suspended its store expansion for next year following the Budget.<\/p>\n
Speaking to The Telegraph, he said: \u201cThe cost to [open new stores] now and the risk that you take for every store has just become that much greater, so that in a lot of cases it\u2019s not worth the risk.\u201d<\/p>\n
Putman told The Guardian separately that he would be \u201csurprised\u201d if HMV found a way to get through next year without cutting jobs following the increase in employers\u2019 national insurance contributions.<\/p>\n
John Lewis<\/h5>\n
John Lewis Partnership boss Nish Kankiwala blasted the government for making a \u201ctwo-handed grab\u201d from businesses as it faces \u201ctens of millions\u201d in additional costs from next year.<\/p>\n
Speaking to The Financial Times, the chief executive said the government should look at \u201cradical change in business rates\u201d because \u201cthat looks like it is going up for us, as is our people costs\u201d.<\/p>\n
\u201cIf they could delay the national insurance [changes], but also if they could fundamentally bring forward a radical reshaping of business rates, I think it will make a massive difference,\u201d he added.<\/p>\n
Liberty<\/h5>\n
Liberty\u2019s chief executive Adil Mehboob-Khan told The Telegraph retailers were having a \u201crough ride\u201d under the Labour Government, and that moves to increase employers\u2019 National Insurance contributions and minimum wage hikes were \u201cmaking us less competitive.\u201d<\/p>\n
Mehboob-Khan said: \u201cIt\u2019s a bit of a stretch to make a statement that you won\u2019t increase taxes, then you increase a tax that people may not perceive as a tax because it doesn\u2019t hit their compensation directly.\u201d<\/p>\n
He added that Labour would have been wiser to focus on \u201cdirect taxation rather than stealth taxation\u201d, adding: \u201cIt\u2019s a well studied phenomena what happens when you [have stealth taxes] is that it doesn\u2019t impact immediately. It does impact eventually.\u201d<\/p>\n
Morrisons<\/h5>\n
The supermarket chain\u2019s CEO Rami Baitieh has urged Labour to staggers its \u201cavalanche\u201d of Budget business\u00a0 costs.<\/p>\n
Speaking to The Sun, Baitieh said: \u201cThe National Insurance change adds insult to injury. The problem is that it\u2019s an avalanche of costs that is coming all at once.<\/p>\n
\u201cSo I have asked them, can we not defer some of it or go step by step, like a doctor would do \u2014 raising the dose with seven pills over seven days.\u201d<\/p>\n
Sainsbury\u2019s<\/h5>\n
Sainsbury\u2019s CEO Simon Roberts warned its prices are set to rise after the government\u2019s decision to raise National Insurance Contributions.<\/p>\n
The supermarket boss argued that while it would do everything it could to \u201cmitigate the impact,\u201d it just didn\u2019t have \u201cthe capacity to absorb this level of unexpected cost inflation\u201d.<\/p>\n
He added: \u201cWhen you think about the \u00a3140m in our business, I don\u2019t think you can shy away from the fact that, because of the changes on everyone\u2019s cost base, it is going to beat through into higher inflation.\u201d<\/p>\n
Roberts explained its National Insurance costs would increase over 50% year on year, and that it had to \u201cwork through the implications of this\u201d with some \u201csome difficult decisions to take as a result\u201d.<\/p>\n
For<\/h3>\nIceland<\/h5>\n
Iceland Foods boss Richard Walker said of the Budget: \u201cThis isn\u2019t a time for businesses to wallow\u2026 The Government isn\u2019t going to change its mind. It was a tough Budget, but we adapt.\u201d<\/p>\n
Speaking to The Telegraph, Walker added: \u201cThere\u2019s been a lot of complaining from business. But, actually what matters much more is how the Government invests for the future and looks at long-term solutions, like skills development, industrial strategy, the business rates overhaul. How they spend all the money they are raising is more important.\u201d<\/p>\n
Jollyes<\/h5>\n
Boss of the pet care specialist and Labour voter Joe Wykes has supported Chancellor Rachel Reeves\u2019 Budget. Speaking to The Mirror, Wykes said: \u201cI feel the government has laid down the gauntlet, it is a challenge for us to grow. My intention is to continue to invest on our people, to continue to open stores, and allow my competition to inflate their prices.\u201d<\/p>\n
Wykes also slammed other retailers who had said price increases were inevitable.<\/p>\n
\u201cI think there is definitely an area of this being used an excuse,\u201d he said.<\/p>\n
\u201cWhat\u2019s interesting is not who puts their prices up, but when they do it. In reality, you get your wage inflation on the 6th of April. Businesses like me, we buy our goods two to three months ahead. In theory, there should be no flow through until July. But I bet you\u2019ll see the opposite, and that\u2019s just blatant profiteering.\u201d<\/p>\n