Tax hikes will force retailers to push up prices, cut jobs and halt shop openings retail chief warns Rachel Reeves
Rachel Reeves has been warned that further tax hikes will cause retailers to push up prices, cut jobs and halt shop openings.
The latest alert was issued by Andy Higginson, the chairman of JD Sports and the British Retail Consortium industry group.
He said ‘all’ retailers have already been left ‘looking to reduce their labour forces’ following a barrage of tax rises this year.
And now firms fear another raid after the Chancellor’s spending review on Wednesday.
Concerns that bosses are set to be hammered at the next autumn Budget were ignited after Ms Reeves said she had failed to shrink the public spending ‘envelope’. Major retailers, including Morrisons, Tesco and Sainsbury’s, have already axed staff.
Firms have had to grapple with higher cost pressures in the wake of measures introduced in the Chancellor’s autumn Budget.
A sharp rise in employer national insurance contributions (NICs) and a big hike in the national minimum wage mean retailers face a £5 billion higher bill after the Budget, according to the British Retail Consortium.
Rachel Reeves has been warned that further tax hikes will cause retailers to push up prices, cut jobs and halt shop openings
The latest alert was issued by Andy Higginson, the chairman of JD Sports (pictured) and the British Retail Consortium industry group
warned that in the end the Government’s tax hikes ‘do work through’ the supply chain, meaning consumers pay more
Firms have also been disappointed by the Government’s lack of urgent action to reform business rates. Mr Higginson told Radio 4’s Today programme: ‘You have seen immediately the impact of the changes made in April, the slowdown that has come straight through to the economy.’
He warned that in the end the Government’s tax hikes ‘do work through’ the supply chain, meaning consumers pay more. Describing the influx of rises introduced in April as a ‘tax on jobs’, Mr Higginson added: ‘All the retailers I know have been looking to reduce their labour forces.’
It comes as dismal employment figures published this week revealed UK payroll numbers have shrunk by 276,000 over the past seven months.
But in recent days, the Chancellor and Prime Minister have claimed that Labour has ‘fixed the foundations’ of the economy.
Moment BBC Question Time audience turns on Labour minister for ‘outrageous’ claim most small boat migrants are women and children
This is the moment a BBC Question Time audience turned on a Labour minister for ‘outrageously’ claiming most small boat migrants are women and children.
More than 14,800 people have arrived in Britain after making the crossing so far in 2025 – making it the worst start to the year on record.
The arrivals continued today, with pictures showing migrants being bussed away from Dover after being intercepted by a Border Force cutter.
The issue was a major topic of debate on last night’s Question Time, which hosted several senior politicians including Darren Jones, Chief Secretary to the Treasury, and Reform UK’s Zia Yusuf.
But Mr Jones provoked fury by claiming in front of a live audience that ‘the majority of the people in these boats are children, babies and women’.
Following cries of disbelief from members of the public, Mr Yusuf interjected to say that ‘more than 90 per cent of them are adult men’.
Home Office figures show 73% per cent of small boat arrivals in 2024 – or 26,999 out of all 36,816 arrivals – were adult males.
Darren Jones, Chief Secretary to the Treasury, prompted fury for claiming most small boat migrants were women and children
Following cries of disbelief from the audience, Reform’s Zia Yusuf interjected to say that ‘more than 90 per cent of them are adult men’
Home Office figures show 73% per cent of small boat arrivals in 2024 – or 26,999 out of all 36,816 arrivals – were adult males. Pictured: Last night’s Question Time audience
Following Mr Yusuf’s intervention, host Fiona Bruce turned to Mr Jones and asked: ‘You’re saying that’s not true?’
He replied: ‘I’m saying it’s not true. I’m saying this is controversial for a reason and you’re told you’re not supposed to challenge the audience on Question Time, but I’m going to.
‘When there are babies and children put into that position by human trafficking gangs, who are coming across the Channel with skin burns from the oil from those boats mixing with the salt sea water, I would ask any of you to look at those babies and children and say ‘go back’.
Mr Yusuf hit back: ‘In my previous answer, I made the case that this Government prioritises foreign citizens over citizens of the United Kingdom. After that testimony, I can rest my case.
‘The vast, vast majority of people making the journey from France by small boat are fighting age, military age, males, not women and children.
‘We’re talking about asylum hotels, and Rachel Reeves saying we’re going to shut down asylum hotels.
‘I spent many weeks in the constituency of Runcorn and Helsby. Runcorn is a very deprived area. And do you know the issue that exercised people so much? The reason is primarily because of HMOs – houses of multiple occupancies.
‘In an unholy alliance of Serco and Yvette Cooper, illegal migrants are being deposited into communities and there’s no say for the local people.’
Taking to X (formerly Twitter) this evening, Mr Jones clarified his position but maintained the percentage of migrants that are adult males is ‘not north of 90%’.
He wrote: ‘Of course the overall majority of people arriving illegally on small boats are men – but not “north of 90%” as Reform claimed.
‘On @bbcquestiontime I shared a story from my visit to the Border Security Command about a dinghy that arrived mostly carrying women, children and babies who had suffered horrific burns.
‘I’m happy to clarify this given how this is now being misrepresented.
‘Labour committed new funding this week to secure our borders while Reform have voted against giving our police the powers needed to smash the gangs fuelling this vile trade.’
At her spending review on Wednesday, Rachel Reeves pledged that migrants would be moved out of hotel accommodation by the time of the next general election, due in 2029.
The arrivals continued today, with pictures showing migrants being bussed away from Dover after being intercepted by a Border Force cutter
An overloaded boat just off the French shore in Gravelines, northern France
French police were seen using batons and teargas to disperse migrants on a beach in Gravelines this morning
Ms Reeves also promised £1 billion of savings by speeding up the asylum system, along with £280 million investment in future years for the new Border Security Command.
Latest figures show £3.1 billion was spent on housing asylum seekers in hotels in 2023-24, out of a total asylum support bill of £4.7 billion.
More than 30,000 asylum seekers are housed in about 200 hotels across Britain, many of whom arrived illegally in dinghies, and ministers are looking at moving them into derelict tower blocks and student digs.
But despite Ms Reeves’ pledge to end the use of hotels, the Tories pointed out that the small print of her Spending Review documents revealed that £2.5 billion will still be spent each year on asylum support by the end of the decade.
It comes as dramatic pictures emerged of French police using tear gas and pepper spray to disperse hundreds of migrants trying to board boats headed for Britain.
Some officers were seen entering the water and dragging them back to shore.
A major point of contention between Britain and France has been the French authorities’ refusal to turn back migrants who are already in the water.
Despite officers’ efforts, a significant number of migrants were able to successfully cross this morning – with pictures showing them at Dover.
Some officers were seen entering the water and dragging them back to shore
A major point of contention between Britain and France has been the French authorities’ refusal to turn back migrants who are already in the water
A record five months of the year has brought the provisional arrivals today so far to 14,812 arrivals.
This has also surpassed the highest total recorded for the first six months of the year, which was previously 13,489 on June 30 last year.
In 2024, the number of arrivals did not reach more than 14,000 until July 9 (14,058).
The Government has vowed to crack down on people-smuggling and Channel crossings since coming to power in July last year.
This includes funding elite officers to increase patrols along the northern French coastline and launching a specialist intelligence unit in Dunkirk to track down people smugglers.
It has also established a Border Security Command to lead strategy and its Border Security, Asylum and Immigration Bill, currently going through Parliament, seeks to introduce new criminal offences and hand counter terror-style powers to law enforcement agencies to target smuggling gangs.
However, critics have repeatedly warned the ‘smash the gangs’ strategy will not work unless there is a deterrent strong enough to prevent migrants from wanting to make the crossing in the first place.
Today, a spokesman for the PM repeatedly refused to engaged with questions about whether Mr Jones was right.
‘The Government is absolutely focused on tackling these vile smuggling gangs… ‘ they said.
Asked again about Home Office figures suggesting he is wrong, the spokesman said: ‘The focus of the government is tackling these vile gangs that deal in misery.’
Pressed if the PM had confidence in Mr Jones, the spokesman said: ‘Yes.’
Shadow home secretary Chris Philp said: ‘Darren Jones is completely out of touch with reality.
‘Since 2018, 73 per cent of small boat arrivals have been single adult men. Yet Labour MPs like Jones still push the fairytale that these boats are full of women and babies. It’s a dangerous distortion of the truth.
‘No wonder this is shaping up to be the worst year on record for small boat crossings. If this is what passes for reality inside the Labour Government, Britain is in serious trouble.’
