[UK] Next blames its rising prices on rising wages

In the UK, High Street retailer Next has announced that it will raise the purchase price of some clothing to offset "an unusually high" £73m increase in staff wages and taxes, BBC News reports.

According to Next, its costs will grow due to measures announced in the autumn Budget, including higher National Insurance payments by employers plus an increase in the National Living Wage.

It reportedly expects prices to increase by 1 per cent; below the current inflation rate.

The British Chambers of Commerce business group revealed this week that more than half of companies plan to lift prices over the next three months to help with higher costs.

Next called the price rise "unwelcome”, however, the retailer added that it will offset around £13 million in wage and tax costs. Its current annual wage bill is around £900 million.

Next was reportedly among a group of large retailers - including Tesco, Amazon and Greggs - who wrote to Chancellor Rachel Reeves in November to warn of price rises and job losses resulting from Labour's Budget measures.

In 2024, the Office for Budget Responsibility said that the majority of the increase in National Insurance Contributions by employers will be passed on via a worker pay rise pinch and increased prices.

Yet, at the time, Ms Reeves said she had "decided the right thing to do was to ask businesses and the wealthiest in our country to pay a bit more".

Next reportedly expects profits to rise by 3.6 per cent to more than £1 billion next year.

Source: BBC News

(Links and quotes via original reporting)

In the UK, High Street retailer Next has announced that it will raise the purchase price of some clothing to offset "an unusually high" £73m increase in staff wages and taxes, BBC News reports.

According to Next, its costs will grow due to measures announced in the autumn Budget, including higher National Insurance payments by employers plus an increase in the National Living Wage.

It reportedly expects prices to increase by 1 per cent; below the current inflation rate.

The British Chambers of Commerce business group revealed this week that more than half of companies plan to lift prices over the next three months to help with higher costs.

Next called the price rise "unwelcome”, however, the retailer added that it will offset around £13 million in wage and tax costs. Its current annual wage bill is around £900 million.

Next was reportedly among a group of large retailers - including Tesco, Amazon and Greggs - who wrote to Chancellor Rachel Reeves in November to warn of price rises and job losses resulting from Labour's Budget measures.

In 2024, the Office for Budget Responsibility said that the majority of the increase in National Insurance Contributions by employers will be passed on via a worker pay rise pinch and increased prices.

Yet, at the time, Ms Reeves said she had "decided the right thing to do was to ask businesses and the wealthiest in our country to pay a bit more".

Next reportedly expects profits to rise by 3.6 per cent to more than £1 billion next year.

Source: BBC News

(Links and quotes via original reporting)