JD Sports and Fullers warn Budget will push up prices

The chancellor’s budget included £40bn in total worth of tax rises.

More than half of these will be paid for by employers, with the National Insurance increase set to generate £25bn a year.

But there are concerns, the impact will still be felt by working people if firms decide to pass on costs through higher prices and if wage increases are restricted.

“It doesn’t feel like a Budget for working people. It doesn’t feel like a Budget for growth. I think it will restrict investment,” said Fullers boss Mr Emeny.

The pub chain boss added that businesses still had not recovered profits fully post-Covid, and that the Budget measures announced cost an “extra £3.5bn” for the hospitality sector.

“There’s no way a sector like ours can carry this level of cost and just absorb it as profit,” he added.

Mr Emeny said that the combination of NI and minimum wage changes would cost his business an additional £8m, although the businesses latest results saw increased sales and profits on its food, drinks and hotels.

In the six months to September, Fullers increased profits before tax by 21% to £17.6m compared with the same time last year.

The average price of a pint of draught lager in the UK was £4.47 in September, according to the Office for National Statistics, but the British Beer and Pub Association recently revealed that landlords make 12p profit per pint.

One London pub boss has said he will likely raise the price of a pint as much as 40p as a result of the Budget.

Mr Higginson said the Budget created a “worrying” backdrop for businesses at a time when economic growth is desperately needed.

“[Labour] came to business pre the election with a promise of economic literacy and being pro-growth, and they do need growth – if you’re going to invest in public services… you do need to get that growth, and it’s hard to see that the actions so far really match that pro-business rhetoric,” he said.