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Currys CEO Alex Baldock has accused the government of not caring about the retail industry after claiming its decision to raise the minimum wage would “load more costs onto an already overburdened sector”.
It comes after chancellor Jeremy Hunt outlined plans to raise the legal minimum wage by 10% to £11.44 per hour, starting from next April, in a move that would see businesses pay full-time staff around £1,800 more per year.
Baldock warned the plan would place significant pressure on high street retailers such as Currys, particularly as businesses face an upcoming business rates hike.
According to The Guardian, Baldock told reporters: “We believe we are paying our colleagues well and we certainly intend to continue to. That said, for the retail industry as a whole, having a big hike in the ‘national living wage’ at the same time as an expected half a billion pound increase in the rates bill just shows how little the government appears to understand or care about this industry.
“There are three million jobs at stake in UK retail, and loading more costs onto an already overburdened sector is irresponsible, and we call for a change of heart on it.”
Retailers are facing a collective £1.95bn rise in local taxes next year. While Hunt froze business rates last year for retail, leisure and hospitality companies, and granted a 75% discount worth up to £110,000 per business, those discounts are set to expire in March 2024.
Baldock added: “On the one hand, the consumer is hard pressed and confidence is pretty bumpy. Interest rates have been rising … and consumers are cautious about their spending. But on the other hand, real wages have continued to climb, employment has stayed high, people have retained savings and customers are treating themselves.”
