Source: Sharecast
According to British Retail Consortium research, which surveyed CFOs representing over 9,000 stores, 85% of finance leaders said their businesses had been forced to raise prices as a result of the last Autumn Budget.
This was due to the well-documented hikes in employer contributions to National Insurance and the increased National Living Wage, which together amounted to £7bn in additional costs for retailers.
What's more, 65% predict further price increases in the coming year, which the BRC believes will pose "significant challenges to household budgets, particularly in the run up to Christmas".
"As the largest private sector employer, offering huge numbers of part-time and entry-level roles, the changes to the NI threshold and National Living Wage have had a disproportionate impact on both retailers and their supply chains, who together employ 5.7m people across the country," the BRC said.
Some 56% of CFOs said they were pessimistic about trading conditions over the next 12 months, with just 11% feeling optimistic.
Meanwhile, 42% had already frozen recruitment, with 38% cutting investment and 15% delaying new store openings.
The gloomy outlook has mainly been driven the tax and regulatory burden, which appeared in the top-three business concerns for 88% of CFOs, up 26 percentage points from BRC's January survey.
Commenting on the data, BRC chief executive Helen Dickinson said: “Retail accounts for 5% of the economy yet currently pays 7.4% of business taxes and a whopping 21% of all business rates.
"It is vital the upcoming reforms offer a meaningful reduction in retailers’ rates bill, and ensures no store pays more as a result of the changes."