Electrical goods retailer Currys said some price rises would be “inevitable” after tax rises announced in the latest budget.
Currys boss Alex Baldock said “unwelcome” tax changes announced by Chancellor Rachel Reeves would also put the brakes on investment and hiring plans.
Rising employer National Insurance contributions and a rise in the minimum wage have led several businesses to warn they will have to pass on the costs to consumers.
Currys said recent changes to tax and other government policies would increase its costs by £32m, and it had only budgeted for around half that.
These costs break down into £12 million from increased National Insurance contributions, £9 million from the National Living Wage increase, £2 million from business rates due to inflation and £9 million from increased supply chain costs due to wages and taxes.
“Unwanted UK government policy headwinds… will increase costs quickly and significantly, reduce investment and hiring, drive automation and offshoring and make some price rises inevitable,” Mr. Baldock.
The government has insisted it has made tough choices to lay the foundations for future economic growth.
But companies including Sainsbury's, Marks & Spencer and BT have all hinted at price rises as a result of the changes, while pub chain Wetherspoons said “all hospitality companies” would increase their prices.
The Primark owner also said it may invest more overseas due to the “burden of tax rises” in the UK.
