Tesco’s national insurance bill is expected to rise an extra £1bn over the next four years following the chancellor’s decision to increase employer contributions.
The supermarket giant, which employs 300,000 people, is estimated to be facing a £250m hike in its yearly tax bill when the changes come into effect in April, according to analysis by Morgan Stanley that was reported in The Times.
Chancellor Rachel Reeves announced last week that employers’ National Insurance contributions will rise from 13.8% to 15% on a worker’s earnings above £175 a week in an attempt to recover public finances.
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Asda estimates the change will add an extra £100m to its tax bill, while Sainsbury’s boss Simon Roberts revealed last week that its National Insurance costs would increase 50% year on year.
Roberts refused to rule out price increases last week as he warned the supermarket chain had “some difficult decisions to take as a result”.
He said while it would do everything it could to “mitigate the impact”, it just didn’t have “the capacity to absorb this level of unexpected cost inflation”.
Tesco has been contacted for comment.
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