The British Retail Consortium, an industry lobby organization, was correct to warn of job losses due to the budget, according to the governor of the Bank of England.
Andrew Bailey told members of the Treasury Committee that Chancellor Rachel Reeves’ announcement last month of increases in employers’ national insurance contributions and minimum wage hikes carries a “risk” of increasing unemployment.
The NEWS cautioned in a letter to Ms. Reeves that the new measures’ price pressure on businesses will result in job losses and higher prices for goods.
However, Mr. Bailey claims that businesses will restore their profit margins.
Because it takes them longer to respond, there will likely be more pressure on businesses’ margins at first, until they recoup, he said.
