UK retailers warn Reeves of £7bn hit from budget tax rises

Tesco is among the retailers that have complained of extra costs after the budget. Photograph: glosszoom/Alamy

Large UK retailers including Tesco, Boots, Marks & Spencer and Next have written to Rachel Reeves to say that a £7bn increase in annual costs after last month’s budget would lead to job cuts and higher prices.

The letter, with 79 signatories sent by the industry body the British Retail Consortium (BRC), warns the chancellor of the financial impact of the impending increase in the national living wage and employer national insurance contributions (NICs).