Those costs break down as £12m from increased National Insurance contributions, £9m from the rise in the National Living Wage, £2m from business rates due to inflation, and £9m from its supply chain hiking costs due to wages and tax, the firm said in its first-half results.
“The unwelcome headwinds from UK government policy… [will] add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable,” said Mr Baldock.
The government has insisted that it has been taking tough choices to lay the groundwork for future economic growth.
But businesses including Sainsbury’s, Marks & Spencer and BT have all hinted at price rises due to the changes, while pub chain Wetherspoons has said “all hospitality business” will increase prices.
Primark’s owner has also said it may invest more overseas due to the “weight of tax rises” in the UK.
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