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

Thomas Fair
·2-min read
Not everyone is eligible for the support, that will hit banks in spring 2023
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Supermarkets, pubs, and various other businesses are signalling that Brits could face higher prices at the tills due to a significant change by the government. Chancellor Rachel Reeves increased the rate of employers' national insurance contributions in the Autumn Budget, sparking concerns among businesses that this could also escalate 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 certain lifestyle, which usually climbs steadily over time. However, a sharp increase leads to what is known as a cost of living "crisis", like that experienced since 2021, where individuals are making difficult financial decisions about essentials such as food or household items.

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The warning from businesses is that the added tax burden from this year will push up prices. Sainsbury's Chief Executive Simon Roberts 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 group JD Wetherspoon has calculated that the Autumn Budget measures will ramp up their costs by £60m, while Marks & Spencer expects a £120m additional expense. M&S Chief Executive Stuart Machin said: "I want to keep focused on fantastic products and value and minimise the impact on customers."

Businesses might offset the financial blow in various ways other than hiking prices. They could accept reduced profits, slash costs, or gradually cut staff and wages.

Chancellor Rachel Reeves acknowledged the tough decision to increase taxes on businesses, but insisted it was the "right choice" to generate funds for improved public services such as schools and the NHS. UK firms also need to prepare for a higher minimum wage, increased business rates, and more robust workers' rights laws and regulations.

The hospitality sector is anticipating price increases of about 6% due to these changes, according to industry group UKHospitality. The organisation's chief executive, 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.

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