Tesco to face £1bn increase to NI bill following Labour’s Budget
Additionally, Asda has estimated its tax bill to soar by an extra £100m
Tesco is expecting to see an increase of £1bn in its national insurance bill over the next four years following Labour’s Autumn budget, according to the Times.
The chancellor Rachel Reeves has increased Employers’ National Insurance contributions in a bid to help raise as much as £40bn in taxes, pledging to also boost long-term growth and “mark an end to short term-ism” as part of Labour’s first budget since it came into power.
Employers’ National Insurance contributions will rise by 1.2%, from 13.8% to 15%. In addition, the threshold at which businesses start paying National Insurance on a worker’s earnings will be lowered from £9,100 to £5,000, a measure that will raise £25bn a year.
As a result, an analysis by Morgan Stanley has estimated the bill for Tesco, which employs 300,000 people in the UK, will be £250m more each year under the new Labour government.
Additionally, Asda has estimated its tax bill to soar by an extra £100m. Meanwhile, Sainsbury’s expects to see a £140m rise and Marks and Spencers a £60m rise.
Sainsbury’s CEO, Simon Roberts, expressed concern, stating that his company will have “some difficult decisions to take as a result”.
Roberts emphasised that Sainsbury’s would attempt to “mitigate the impact” of these costs but acknowledged the challenge due to the unexpected scale of cost inflation.
