Tesco, Asda, Morrisons, Sainsbury's, Lidl, Aldi shoppers face nasty shock in frozen aisle

James Rodger
·2-min read
Tesco, Asda, Morrisons, Sainsbury's, Lidl, Aldi shoppers face nasty shock in frozen aisle
-Credit: (Image: Reach Publishing Services Limited)


Supermarket shoppers have been warned the price of frozen food will skyrocket. Trade body the Cold Chain Federation said the Chancellor's increase in employers' National Insurance Contributions will cost firms that deliver frozen.

Its CEO Phil Pluck said: "This is just the beginning. The £620million increase will inevitably lead to higher prices for consumers. Coupled with the impending business rates review, the UK public can expect to pay more for essential food and medicine."

In a warning for Tesco, Asda, Morrisons, Sainsbury's, Lidl and Aldi shoppers, Mr Pluck added: "Since the Budget announcement, cold chain operators have reported that increased wage bills are hindering their ability to create new jobs and offer competitive salaries. The Government's economic strategy risks stifling growth, suppressing wages and ultimately placing a greater financial burden on consumers."

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Wednesday's Budget outlined policies to increase spending by almost £70bn a year over the next five years. About half of this is being funded by tax increases, with the other half coming from a rise in borrowing. The NI rise for employers is set to raise £20bn a year making it one of the biggest single tax-raising measures in history.

From next April, employers will have to pay NI at 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100 currently. The Institute of General Practice Management, which represents GP practice managers, has estimated the rise will put up the tax bill of the average surgery by around £20,000 a year.

Businesses are likely to respond by holding back on pay rises, influential think tanks, the government's independent forecaster and the chancellor herself have all said. "It will mean businesses will have to absorb some of this through profits and it is likely to mean wage increases might be slightly less than they otherwise would have been," Rachel Reeves previously told the BBC.

The Institute for Fiscal Studies (IFS) said the rise in employer NICs will affect larger firms hiring people on low wages the most, while the Resolution Foundation think tank described the move as a "tax on working people".

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