Currys warn it is ‘inevitable’ prices will rise as the Budget will cost the company an extra £32 million

The electrical retailers Currys has warned there will be price hikes as Labour’s Budget will cost the company an extra £32 million in extra costs.

Alex Baldock, group chief executive of Currys warned it is “inevitable” prices will rise because of the Budget and this will ““depress investment and hiring” plans.

The retailer is the latest business to warn of price rises as the minimum wage will rise and employers national insurance contributions will also increase.

Currys has warned there will be an extra £2 million cost in rates, £9 million in costs from partner businesses and national insurance contributions and minimum wage increase will cost the company £21 million.

Baldock said “despite new and unwelcome headwinds from UK government policy” they are still expecting to see a growth in profits.

He added, “These will add cost quickly and materially, depress investment and hiring, boost automation and offshoring, and make some price rises inevitable.”

Baldock said, “We were well prepared for our peak trading period, with healthy stock and market-beating, best-ever deals that show our unmatched importance to suppliers.

“We’re trading in line with expectations. One highlight is rising demand for AI laptops, where we enjoy over 75% market share in the UK.”

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said, “Compared to recent history, Currys had an electric start to the year, with both first-half revenue and profit moving higher.

“The positive momentum and continued recovery indicate a potential easing market headwinds and there’s now cautious optimism for the future.”