Vistry Group PLC (LSE:VTY) and Serco Group PLC (LSE:SRP) on Friday joined the growing list of businesses warning over a surge in costs due to higher taxes following last month’s Budget.
Outsourcing firm Serco signalled in an update on Friday that higher employer national insurance contributions (NIC) would cost it £20 million.
Housebuilder Vistry said it was in line for a £5 million hit from the higher tax burden in the meantime.
This comes after Chancellor Rachel Reeves announced employer NIC would rise to 15% on salaries above £5,000, against 13.8% on those over £9,100 currently, in the Budget.
J Sainsbury PLC (LSE:SBRY), Marks and Spencer Group PLC (LSE:MKS) and JD Wetherspoon PLC (LSE:JDW) have also warned this week over the likelihood of price rises as a result of the increase.
Sainsbury’s said it was facing a £140 million hit on the move, while M&S calculated the extra cost at £60 million - or £120 million when including higher minimum wage payments.
Wetherspoon boss Tim Martin laid out expectations for “all hospitality businesses [...] to increase prices,” adding the chain was facing a £60 million blow.
Vistry rival Persimmon had also flagged growing costs earlier in the week after the Budget, but did not provide a figure, while Primark owner Associated British Foods PLC (LSE:ABF) signalled investment could be diverted outside of the UK in response.