Two thirds of British retailers will raise prices this year in response to higher employer social security costs introduced in the new Labour government's first budget, a survey of finance chiefs showed on Wednesday.

Two thirds of the nation’s top retailers have warned they will have to raise prices to cope with rising tax bills triggered by chancellor Rachel Reeves’s budget.

U.K. retailers are expecting a bleak 2025 and most of them plan to raise prices in the wake of cost increases related to the national insurance contributions this year, a report showed.

The BRC poll of 52 chief financial officers found 70% are ‘pessimistic’ or ‘very pessimistic’ about trading conditions over the coming 12 months.