Asda boss warns shop prices will rise IMMEDIATELY in wake of mini-Budget shambles

A Tory peer has admitted households face a “very, very unpleasant” time ahead as he slammed Kwasi Kwarteng’s mini-Budget shambles.

Lord Rose, former boss of Marks & Spencer and now chairman of Asda, criticised the Chancellor for ditching the 45p rate of tax for the rich.

And he warned some shop prices would rise “immediately” because of the plunge in the pound.

It came on another dramatic day that saw the Bank of England announce emergency plans to buy UK Government debt after warning of a “material risk to UK financial security” if the current turmoil continued.

The move is specifically designed to bring down interest rates - yields - on Government bonds of 20 years or more.

Prices are set to soar at the tills in the months ahead, Brits have been warned (Bloomberg via Getty Images)

The intervention follows concern that pension funds facing urgent demands for cash from investment managers could be forced to sell bonds they hold in a hurry.

The Bank warned this week that borrowers faced another “significant” interest rate to try to prop-up the plunging pound.

Lord Rose, interviewed on Radio 4’s Today programme, predicted there will be another “massive” interest rate rise in the next three to four weeks, I can’t see how it won’t happen.

He warned any such hike will be “very, very unpleasant” for many people.

Chancellor of the Exchequer Kwasi Kwarteng has come under fire in recent days (POOL/AFP via Getty Images)

“If you’re a consumer you’ll be saying, ‘blimey, this is going to be quite a difficult time’, and it will be,” he added.

Lord Rose said the mini-Budget has dented business confidence.

“Business hates uncertainty and what we have now is rather more uncertainty,” he said.

“Nobody likes to operate without full visibility of the runway.”

Wth the pound “dropping like a stone”, the retail veteran said the impact would be felt by shoppers.

Kwasi Kwarteng has been widely criticised for ditching the 45p rate of tax for the rich (Getty Images)

He explained: “A lot of our food at this time of the year, most of textiles, most of our electronics and household goods are imported, so the cost of those will go up immediately.”

Lord Rose also had a dig at the Chancellor’s announced cut in the rate of income tax for big earners. “From my own personal point of view, I wouldn’t work any less hard if my tax was 45% rather than 40%,” he said.

“I personally do not think it was necessary to reduce tax from 45% to 40% at this particular time.