The boss of Primark is preparing for a significant jump in business costs following the Chancellor’s decision to introduce a rise in national insurance employer contributions.
George Weston, CEO of Primark owner Associated British Foods, warned the rises will weigh heavily on the British high street and increase its own bill by “tens of millions”, The Times reported.
Weston said the change in threshold would “impact high street city centre businesses more than many others, whether it’s food, whether it’s shops”.
He added: “I think it falls disproportionately on high street players.”
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During chancellor Rachel Reeves’ first Autumn Budget, she revealed the amount businesses will pay on their employees’ national insurance contributions would rise from 13.8% to 15% from April 2025.
The £9,100 threshold at which employers start paying national insurance on employees’ earnings has also been lowered to £5,000.
Weston’s comments come after the Primark saw its adjusted operating profit skyrocket 51% to £1.1bn on the back of sales growth and significant margin recovery.
Sales jumped 6%, which it attributed to the relevance of its “great value clothing, unique store experience and increased digital engagement”.
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