Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

The Entertainer halts new store plans due to budget’s national insurance hike

by November 9, 2024
November 9, 2024

The Entertainer, one of the UK’s largest toy retailers, has abandoned plans to open two new stores following the government’s decision to raise employer National Insurance (NI) contributions.

Chief Executive Andrew Murphy explained that the increased costs have also led to a hiring freeze at the company’s head office.

The decision underscores mounting business concerns over the Budget’s changes, which increase the NI rate for employers from 13.8% to 15% from next April, with the tax threshold reduced from £9,100 to £5,000. The policy is expected to raise around £25 billion annually to stabilise public finances, following revenue cuts under the previous government.

Speaking to BBC Radio 4’s *Today* programme, Murphy said, “There’s no argument with the government’s ultimate goals… simply the balance with which they pursued them.” He highlighted that The Entertainer had completed viability assessments for two new locations, but the NI rise shifted the financial outlook, leading to the store closures.

Other major companies, including Sainsbury’s and Marks & Spencer, have hinted that increased NI rates may lead to higher prices as businesses seek to manage rising costs. Sainsbury’s CEO Simon Roberts estimated that the supermarket chain faces £140 million in additional costs, warning, “It is going to feed through into higher inflation.”

Labour has defended the tax hike as a means to “restore desperately needed economic stability.” Chancellor Rachel Reeves responded to the criticism, stating, “We’ve got to raise the money to put our public finances on a firm footing.”

Some businesses are contemplating expanding operations outside the UK in response to rising employer costs. Arnab Basu, CEO of Kromek, noted that planned cuts to US corporation tax under President-elect Donald Trump, coupled with lower energy costs, make the US an increasingly attractive environment for investment.

Similarly, Associated British Foods, the parent company of Primark, has suggested that tax increases may prompt it to prioritise growth beyond the UK. CEO George Weston commented, “We’re an international business as well, we have choices about where we will invest.”

The Treasury defended the NI changes as essential for economic recovery. “This government is committed to delivering economic growth by boosting investment and rebuilding Britain,” a spokesperson said.

The Entertainer’s decision highlights a broader trend of UK businesses reassessing domestic investments as they navigate the evolving tax landscape and rising operational costs.

Read more:
The Entertainer halts new store plans due to budget’s national insurance hike

0
FacebookTwitterGoogle +Pinterest
previous post
Iran denies involvement in Trump assassination plot outlined in DOJ report: ‘Malicious conspiracy’
next post
How Shakira Millar Built a Compassion-Driven ABA Practice

You may also like

Cryptocurrency firm advised by Philip Hammond withdraws UK...

October 14, 2022

Lord Sugar enjoys payout after selling stake in...

April 4, 2023

HSBC and Lloyd’s of London show differing opinions...

February 27, 2023

UK house prices fall at sharpest pace in...

November 7, 2022

‘Gen Z’ Oxford University female co-founders scoop German...

September 30, 2022

Getting To Know You: Ronan Finnegan, co-founder, Spacebands

January 29, 2023

UK on track for nationwide full-fibre broadband rollout...

March 22, 2025

Sunak announces emergency legislation to overturn Post Office...

January 10, 2024

Are the Glazers Wrong? Football Clubs Need to...

September 29, 2022

Aldi overtakes Morrisons as fourth largest supermarket

September 13, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved