M&S Warns of Price Hikes After Budget Tax Increase

• Marks & Spencer to pass on small price increases due to rising NICs and minimum wage
• Combined cost to the retailer expected to reach £120 million
• Boss Stuart Machin assures price rises will be "small and behind the market"

Marks & Spencer has announced that it will implement small price increases on its products as a result of the Government's Budget tax changes. The hike in employer National Insurance contributions (NICs) and minimum wage is expected to cost the retailer £120 million, forcing adjustments to its business strategy.

CEO Stuart Machin emphasised the company’s efforts to minimise the impact on shoppers, stating, “Our suppliers are also feeling the pinch, and that comes through straight to retail. We will ensure any price rises are small and behind the market.”

Staffing and Future Plans

While Machin does not anticipate significant job losses, he admitted the retailer would need to be more strategic about recruitment and investment decisions. Despite these challenges, M&S reported strong sales over the festive period, particularly in its food division.

Tom Church, Co-Founder of LatestDeals.co.uk, commented: “Rising costs across the board mean consumers are likely to feel the pinch. Shoppers may need to look out for deals and plan purchases carefully.”