Thu, 03 Apr 2025

Thu, 03 Apr 2025 Lush and Kwik Fit warn tax rise will push up prices

The brands are warning of the impact of employer National Insurance Contribution rises which kick in on Sunday.

* Lush will raise prices by £2.7m per year due to increased employer National Insurance (NI) contributions
* Kwik Fit estimates the NICs rises will cost it £6.4m, with a knock-on effect on prices and recruitment
* Employers' NI rate increase from 13.8% to 15% on salaries above £5,000
* Firms are considering various measures to cover higher costs, including: + Reducing profit margins (e.g. BT will cut jobs) + Freezing hiring or reducing staff levels (e.g. Kwik Fit and Jump Xtreme) + Cutting jobs (e.g. Webb Hotel Group has already reduced workforce by 10%) + Increasing prices (e.g. Lush, Jump Xtreme, and Webb Hotel Group)
* Businesses are concerned about the impact on their bottom line, with costs ranging from £1,000 to £39m
* Over a quarter of working-age population is currently unemployed (those aged 16-64)
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