Market News
As tax hit looms, UK employers prepare to push up prices - REUTERS
Summary
- UK employers face bigger social security bill from Sunday
- Businesses say prices are likely to rise to cover the cost
- Bank of England is watching for impact on inflation
- Lower staffing, slower wage growth also likely responses
BROADSTAIRS, England, April 4 (Reuters) - Pub owner Philip Thorley sees only one direction for his prices once a tax hike for British employers kicks in next week: up. That may be bad news for the Bank of England, which plans to lower interest rates to help the sluggish economy.
Thorley, who owns 18 hospitality sites around the seaside town of Broadstairs, said he could not absorb all the extra cost, which follows a painful run of inflation in recent years.
