Bosses at Halfords and AO blame budget for predicted price rises

British consumers face paying more for car repairs and new kitchen kit after the retailers Halfords and AO.com warned that the autumn budget had increased their costs.

- Julia Kollewe Sarah Butler

Halfords, the cycling and motoring retailer, which has more than 12,000 employees, yesterday reported that the budget measures would add £23m of direct labour costs, of which £9m was already included in its planning assumptions.

Meanwhile, John Roberts, the chief executive of the online electrical goods specialist AO World, said his direct labour costs would rise by £4m because of changes to national insurance contributions and the minimum wage, and there would be a further £4m from indirect labour costs such as payments to self-employed delivery drivers and agency workers.

"I'm no economist, I'm a washer flogger from Bolton, but if you dramatically increase all the costs then prices will go up, as night follows day. They have to," Roberts said.

He said he was concerned as "inflation hurts the people that can afford it the least the most".