A HOST of pub chains have warned of price rises ahead of a major tax rise.
The Government is hiking employer contributions (NICs) from tomorrow as part of plans to raise £25billion.
will have to pay employer NICs on workers' wages at a rate of 15%, up from 13.8%.
Meanwhile, the threshold at which they have to be paid is being lowered from £9,100 to £5,000.
The changes to the tax system the last October.
The Chancellor insisted the tax hike would protect workers as per Labour's manifesto.
But the Institute for Fiscal Studies warned it would ultimately be felt by staff in reduced wage rises.
Not only this, but a host of businesses have warned they will have to raise prices in order to cover the tax hike.
The British and Pub Association, which represents the industry, , in part due to the hike in employer NICs.
Meanwhile, a host of pub chains have warned they will have to hike up prices at pumps to cover the increase in NICs.
This is a list of some of the pub chains who have cautioned of price rises, or who have already hiked prices:
- on pints
- on pints
- on pints
- on pints
RETAILERS CAUTION OF PRICE RISES
It's not just pub chains warning of price rises due to the upcoming Government tax raid.
The (BRC) in the later part of this year.
hiked its sausage rolls – up from £1.25 to £1.30.
Meanwhile, said they would have to raise prices in response to higher NICs.
Around 24 of the 52 surveyed said they would look at reducing staff numbers too.
would have to pass on extra costsdue to the National Insurance and minimum wage hikes.
Stuart Machin said any price rises would be “small and behind the market”;.
, some of which it will be forced to pass on to shoppers.
The retailer said it will need to push through an “unwelcome”; 1% rise in prices because of the increase in employer National contributions.
The boss of as it faced a £32million bill due to the Autumn Budget.
Meanwhile, DIY specialist Halfords warned it may be forced to push up prices at its repair garages due to a £23million wage bill.
Royal Mail and Primark have also said shoppers will pay more as a result of the tax increase.
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