The
British Retail Consortium (BRC) has warned that the recent increase in National
Insurance contributions could cost the industry as many as 10,000 jobs.
The
BRC warned the Bank of England that the increase would not be passed on to the
consumer and instead would have to be absorbed by the retail sector, putting
jobs at risk.
Bill
Moyes, BRC director general, said the changes would have a direct impact on retail
jobs because of reduced investment:
"The
increase in National Insurance was a tax on jobs and the Bank of England got
hard evidence of that today," he said.
"We
will continue to press Government to rethink this burden on business. We
recognise the need to improve the funding of the NHS, but not at the expense of jobs and investment in the UK’s most
successful industry."
Retailers
also warned that the changes could lead to more stocks and supplies being
sourced from outside the country, which would impact further on UK jobs.
