Sainsbury’s boss accuses Labour of ambushing businesses with crippling National Insurance hike
THE boss of Sainsbury’s has accused the Government of ambushing businesses with its giant tax raid without any consultation or warning.
Simon Roberts, chief of the UK’s second biggest supermarket, said National Insurance rises were “not what anyone was expecting, certainly not the speed it was coming at”.
He said companies had no time to plan and so tough decisions on prices and hiring of staff would now have to be taken.
Mr Roberts said: “If there had been more time, or if the changes had been phased, there would be a clear period for businesses to plan. That would have made a very substantial difference”.
Sainsbury’s has said it faces a £140million hit from the Budget change so the chain will have to be very careful with recruiting.
Mr Roberts urged the Government to not pile on the pain with its business rates review, which could make superstores more expensive to run.
But Sainsbury’s still handed staff a 5 per cent pay boost, worth more than £1,000 for the average worker, after its “biggest” Christmas.
Sainsbury’s and Argos workers will see hourly pay increase from £12 to £12.45 in March, before rising to £12.60 in August.
Despite the strong festive trading, shares in Sainsbury’s fell by 3.34 per cent.
Its retail peers have also been punished this week as the City fears their profits will be hit by the Budget.
Boots boost
BOOTS has had a glow-up from strong sales of beauty products over Black Friday.
The health and cosmetics retailer said purchases rose by 8.1 per cent in the three months to the end of November.
It was helped by a boost from premium make-up and Korean skincare products.
Home gloom
MORTGAGE rates are set to rise again after this week’s bond market turmoil, warn experts.
The average rates for a two-year fixed deal are now at 5.47 per cent — almost the same as January 2024.
It was hoped they’d fall significantly but they are set to stay higher for longer to control inflation.