Lush and Kwik Fit are set to increase prices in response to a rise in employers' National Insurance (NI) contributions, which will go from 13.8% to 15%. This change forces companies to make difficult decisions, as they grapple with increased operational costs—Lush anticipates an annual increase of £2.7 million, prompting gradual price adjustments. Kwik Fit expects a £6.4 million boost in costs, resulting in potential job cuts at senior levels and a careful re-evaluation of pricing to maintain competitiveness against market benchmarks. The government anticipates approximately 940,000 businesses will face higher contributions, influencing their financial strategies as well.
Lush's approach will involve incremental price changes throughout the year to mitigate impact on customers from the increased National Insurance costs, totaling £2.7m annually.
Kwik Fit's managing director acknowledged that the National Insurance increase would lead to price adjustments and possibly a hiring freeze at senior levels.
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