Retailer Next warns of price hikes and slowing growth following Budget measures announced last year

manchestereveningnews.co.uk:

Next has warned that it will be increasing prices due to slowing sale growth and impact from the recent Budget. The retail giant has said it faces a £67 million rise in wage costs over the next year, since the government announced plans to increase employer national insurance contributions plus the minimum wage from April.

Rachel Reeves' first budget as chancellor caused many retailers to express concern. Back in November, more than 70 businesses, including shopping giants Tesco, Asda and Sainsbury’s, told Rachel Reeves in an open letter that the changes announced in last month’s Budget mean price hikes are a “certainty”.

Next said it will need to push through an “unwelcome” 1% rise in prices as part of efforts to help offset the hit. The company also warned that sales growth will pull back sharply over the year ahead as the Budget measures, which come into force in April, are set to hit jobs and send prices rising across the economy.

The group has added to a growing list of firms alerting over price rises to combat cost increases, while the British Chambers of Commerce said earlier this week that more than half of companies are planning to lift prices over the next three months due to cost pressures.