Sainsbury's to raise prices due to Budget 'pressure'

Sainsbury's has said shoppers will face higher prices as a result of the surprise tax changes announced in last week's Budget, which will hit the retailer with an extra £140m in costs.

- HENRY SAKER-CLARK

The supermarket giant's boss Simon Roberts said there is "already too much pressure in the pipe" for the retailer to swallow an unexpected cost rise without it affecting prices.

It has become the latest business to warn that increases to company national insurance contributions, coupled with a change in the threshold, are likely to result in pressure on consumers. Mr Roberts said Sainsbury’s will see costs rise by £140m because of the changes, while costs will also be pushed higher by an increase in the national living wage. He said the “unexpected barrage of costs” will “feed into a higher level of inflation” for consumers.