High street firms face ‘terrible choices’ after Budget tax rises

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Hospitality and retail businesses have said they have “terrible choices to make” about potential cuts to investment and their workforces due to Budget tax rises. Rachel Reeves revealed a £25.7 billion change to employers’ national insurance contributions in last month’s Budget, which would increase the rate of the tax and the threshold at which firms must pay. Hospitality veteran Luke Johnson, currently an investor and director in bakery chain Gail’s, told BBC Radio 4’s Today programme that companies will now face “really tough choices”. It’s a tax on jobs, a tax on work, it’s a regressive tax because it will hit low earners, and for labour-intensive businesses like hospitality or retail it's enormously discouraging Gail's investor Luke Johnson The former Pizza Express chairman said: “I think it’s a mistake because it’s a tax on jobs, a tax on work, it’s a regressive tax because it will hit low earners, and for labour-intensive businesses like hospitality or retail it’s enormously discouraging.