Consumer
Sainsbury Warns of Returning Inflation After Labour Tax Hike
- Supermarket to face £140 million bill from higher payroll tax
- ‘Barrage of costs’ cannot be absorbed, says CEO Roberts
A J Sainsbury Plc supermarket in Guildford, UK.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
J Sainsbury Plc warned of a return to higher inflation in UK supermarkets after the Labour government hiked payroll taxes in last week’s budget.
Britain’s second-largest grocer said it faces a £140 million ($181 million) bill from an increase in national insurance contributions, the main revenue-driver in Chancellor of the Exchequer Rachel Reeves’s more than £40 billion of tax increases.