Currys boss urges Andy Burnham to reverse Rachel Reeves’s National Insurance raid
The outgoing boss of Currys has urged Andy Burnham to reverse the Chancellor’s National Insurance raid on employers.
Alex Baldock, who is stepping down as chief executive of the electrical retailer later this summer, urged the next Prime Minister to ‘make it less risky, less expensive and less difficult to hire people in large numbers.’
He said that ‘everyone is concerned’ over growing numbers of young people not in work or education and that reversing the increase to employer National Insurance contributions would help firms hire.
His remarks came as the retailer said trading so far in its new financial year has been ‘very solid’ as the World Cup has boosted a ‘supersizing trend’ of growing demand for large televisions.
Profits for the year to 2 May grew 18 per cent to £191 million while sales climbed 6 per cent to £9.25 billion – bucking a trend of gloomy decline seen by other British firms.
Currys: The business said consumer confidence is still gloomy in the UK while retailers struggle with high costs of employing people
But Baldock said this was a ‘product of self-help’ as the group had become less reliant on the consumer environment, including by selling more products to businesses and to consumers abroad, including in the Nordics.
Grim consumer confidence in the UK has ‘translated into a challenging technology market’, Baldock explained.
Baldock, who will take on the job leading chemist Boots amid speculation he could lead it into a listing on the London stock market, said that the next Government must ‘lower costs’ for retailers.
He urged Burnham to reverse some of the changes announced in the 2024 Budget, particularly increases to employer taxes.
The High Street was left reeling after Chancellor Rachel Reeves’ surprise increase to National Insurance contributions for employers at her first Budget in 2024.
The rate of employer National Insurance contributions (NICs) rose from 13.8 per cent to 15 per cent in April 2025, with the threshold at which it’s paid back slashed from £9,100 to £5,000.
This was a shock for firms and hit services sectors, including retail and hospitality, the hardest as they are more likely to employ people on part-time contracts.
Baldock also warned that Labour’s flagship Employment Rights Act could backfire and result in employers decreasing hiring.
Under the new act, firms must offer a guaranteed number of hours to regular workers.
But Baldock said businesses ‘simply can’t afford to pay for hours that we don’t need. Even strong retailers like Currys might end up hiring fewer people and missing out on sales.’
He said: ‘Anyone who has been shopping knows that stores are busier at some times than others.
‘December’s busier than February, Saturday is busier than Tuesday afternoon, and therefore we need to flex up and down the number of colleagues we have on the floor at any one time.’
And Baldock urged the next Treasury to level the playing field on tax by going ‘further and faster’ with closing a loophole that allows online giants such as Shein to ship low-value parcels to the UK for free.
The Government has said it will now look to scrap the loophole by October 2028, as opposed to March 2029, but retailers are still furious that overseas firms will continue to have an advantage for years.
Baldock also reiterated calls for a ‘level playing field’ on business rates, saying ‘rates have risen faster on bricks and mortar retail than they have on [online warehouse] sheds, and that needs rebalancing.’
But he said the World Cup was helping boost sales at home and in Norway, with products including barbecues, inflatable hot tubs and home beer pumps also doing well in the warm weather.
A growing interest in health among consumers has also boosted demand for wearable technology such as fitness trackers.
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