FACTBOX UK firms flag over $1.4 bln in labour costs from increase in national insurance, wages

Impact of Increased Labour Costs: British companies are anticipating a total increase of £1.1 billion in labour costs due to rising National Insurance Contributions and minimum wages, as outlined in Finance Minister Rachel Reeves' budget. Various retailers and service providers have reported specific projected cost increases ranging from millions to hundreds of millions of pounds.

Inflation Concerns: Companies are warning that these increased costs may contribute to inflation, with several major retailers like Sainsbury's and Asda highlighting significant financial impacts and potential inflationary effects stemming from the changes in social security contributions and wage hikes.