Fashion chains Next, Sainsbury’s, Debenhams, M&S and Home Retail Group were among retailers who saw shares sink after announcing they will face significantly higher costs stemming from plans revealed in yesterday’s summer Budget.
Shares in UK retailers sank by as much as 3% following Chancellor George Osborne’s announcement of a National Living Wage of £7.20 an hour for over-25s from next year, rising to £9 by 2020.
John Harding, employment tax partner at PricewaterhouseCoopers, said businesses needed to prepare for a "significant increase" in staff costs.
He added: "Although this increase will only affect the over 25s they do make up a significant proportion of employees who are either on or just above the current national minimum wage.”
