Currys boss warns over jobs claiming Labour tax hikes make it 'riskier and more expensive' to hire staff
Rachel Reeves has dented hiring and driven up prices by hitting businesses with punishing tax rises, the boss of Currys has declared.As the Chancellor sought to woo the global elite at the World Economic Forum in Davos on Tuesday, she faced a backlash at home from British executives reeling from her policies. Concerns: Currys boss Alex BaldockCurrys chief executive Alex Baldock outlined how higher taxes and rising costs – such as the £25billion National Insurance raid and hikes to the minimum wage – have crippled retailers.‘If you make it harder, riskier and more expensive to employ people, then fewer people will be employed,’ he said.The comments came as supermarket giant Morrisons said its costs have risen by £200million in the past year, while pub chain JD Wetherspoon warned of a £45million hit in the past six months.And it followed official figures showing inflation has risen to 3.4 per cent and more than 200,000 jobs have been lost since Labour came to power.Shadow chancellor Sir Mel Stride said: ‘Businesses couldn’t be clearer: Labour’s tax-and-spend agenda is costing Britain jobs. When you punish employers, you punish workers – and working people are paying the price.’Currys cheered a strong Christmas, however, with sales up 6 per cent over the ten weeks to January 10. The electronics retailer raised its profit outlook for the year to between £180million and £190million.Baldock said ‘AI-powered’ goods were in high demand, including vacuum cleaners and wearable tech.Smart glasses, such as Meta Ray-Bans and Oakley Meta, were ‘flying off the shelves’, he noted, with sales up 270 per cent.Currys shares rose 7.7 per cent, or 9.6p, to close at 135p.But Baldock warned: ‘At the moment, consumers are saving more than they’re borrowing, which is unusual by historical standards.‘We can see that consumers are cautious. They’re concerned about inflation and jobs and interest rates, and they’re definitely in a cautious headspace.’ Recovery: Currys enjoyed a strong Christmas with sales up 6% over the ten weeks to January 10And hitting out at rising taxes and increased regulation, he said ‘even strong businesses like Currys could be contributing so much more were the Government to help us with some of the costs and the red tape’.He also told Times Radio: ‘We’ve still got some concerns about the employment rights bill that’s coming down the track. Certainly, it has depressed hiring right the way across the retail sector.’Dan Coatsworth, head of markets at AJ Bell, said: ‘Currys is a rare UK retail success story of recent years with an impressive recovery for the business from its 2023 nadir.‘As its festive update amply demonstrates, there is no sign of that letting up.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Currys boss warns over jobs claiming Labour tax hikes make it 'riskier and more expensive' to hire staff
