The Entertainer has pulled its plans to open new stores following the government’s decision to raise National Insurance contributions for employers.
The toy specialist revealed it had frozen hiring at its head office and said it could no longer open two shops it had planned after announcements made in last week’s Budget.
Chief executive Andrew Murphy told BBC Radio 4’s Today programme that two of the retailer’s proposed new openings had failed their viability assessments.
Related Story
-
Asda chair admits £100m hit to National Insurance bill is ‘not an easy swallow’
08/11/2024 x 12:25 PM
He said: “We were just about to initiate the work and unfortunately the changes to National Insurance in particular just tipped that balance so those stores will now not be opening.”
Murphy is not the only chief executive to have spoken out following the government’s decision to raise employer contributions in April from 13.8% to 15% on a worker’s earnings above £175 a week.
Asda chair Lord Stuart Rose admitted that the upcoming £100m rise to the supermarket’s tax bill was “not an easy swallow”.
Meanwhile, Sainsbury’s boss Simon Roberts warned the grocer has “some difficult decisions to take”, including raising its prices, as it looked to mitigate the impact of the 50% rise in its National Insurance bill.
Click here to sign up to Retail Gazette‘s free daily email newsletter
