Have your say! Are you worried about the cost of living rising again?

Supermarkets, pubs, and other businesses are sounding the alarm that consumers may have to brace for increased prices following a significant government change. Chancellor Rachel Reeves's decision to hike the rate of employers national insurance contributions in the Autumn Budget has sparked concern among businesses about its potential impact on the cost of living.

Have your say! Are you worried that the cost of living will rise again? Comment below, and join in on the conversation.

The term "cost of living" describes the amount of money required to maintain a particular lifestyle, which generally rises in manageable ways. When such costs experience a sudden and steep increase, it leads to what is known as a "crisis" like that seen in the UK since 2021, forcing individuals to make difficult financial decisions over previously affordable items such as food and household goods.

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Warnings from businesses suggest that the additional tax burden introduced this year could translate into price hikes for consumers. Simon Roberts, the chief executive officer of Sainsburys, has estimated that the changes could saddle the grocery giant with an extra £140 million per annum.

He said: "This barrage of costs coming at us is significant and we're an industry, a very efficient industry and intensely competitive, and there just isn't capacity to absorb all of this."

Prominent pub chain JD Wetherspoon anticipates the Autumn Budget measures will incur an additional £60 million in costs, while retailer Marks & Spencer are expecting a £120 million hit. M&S's Chief Executive Stuart Machin commented: "I want to keep focused on fantastic product and value and minimise the impact on customers."

Businesses might manage the financial impact through various means other than hiking prices. They could settle for reduced profits, slash expenses, or gradually cut down on staff and salaries.

Chancellor Rachel Reeves acknowledged the tough decision to increase the tax load on businesses but insisted it was the "right choice" to generate funds for enhancing public services such as education and healthcare. Additionally, UK firms will need to prepare for a higher minimum wage, increased business rates, and more robust workers' rights laws and regulations.

The hospitality sector's trade association, UKHospitality, predicts that this could lead to a price surge of about 6 percent in their industry. The group's CEO, Kate Nicholls said: "The increase to employer NICs and, crucially, the lowering of the threshold left hospitality owners with a sleepless night as they came to terms with the enormous cost they will have to bear from April onwards. The new cost of employing core members of staff is eye watering an increase of at least £2,500 is far, far beyond what anyone's worst-case scenario was."

"Hospitality is at the heart of our communities but the enormous value it delivers both socially and economically is under threat."

Have your say! Are you worried that the cost of living will rise again? Comment below, and join in on the conversation.