Greggs boss warns of price rises after Budget blow following major supermarkets

GREGGS will increase the price of its bakery goods because of raised National Insurance contributions and hikes in the minimum wage.

The chief of the no-frills chain said the measures the government rolled out in the autumn budget would put pressure on prices.

1

Boss Roisin Currie said that customers could expect to see the cost of a sausage roll or other baked goods rise by "pennies".

On average Greggs customers spend £4 at its stores and this is forecast to rise marginally.

It comes despite Currie promising there were “no plans” for further price increases this year after bumping the price of its sausage roll in July,

Over the summer, Greggs confirmed the price of its much-loved pastry snack and its vegan alternative had risen by 5p to £1.25.

At the time, she said the move was necessary after experiencing a rise in costs from having to pay a higher national living wage for its 32,000-strong workforce.

Back in 2021, a sausage roll at the chain cost just £1 but over the past three years, it has increased by a total of 25p.

Greggs, which has more stores than McDonald's in the UK, will open up to 160 new shops in 2024, with a focus on outlets at petrol forecourts, retail parks and transport sites.

Ms Currie said the Labour government's tax-raising budget would not halt plans for growth.

She said: "Our shop growth plan, our supply chain investment, none of that changes. We are still absolutely going for growth."

Chancellor Rachel Reeves said during her autumn statement she would raise employers' National Insurance contributions.

She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.

It's estimated that the move will raise £25billion - the equivalent of around £800 per employee for each firm.

The move sparked fury from supermarkets and other retailers who warned hikes to National Insurance contributions could lead shoppers to pay more at the till.

Lidl chief Ryan McDonnell previously told The Sun the tax raid has left the bargain supermarket dealing with “tens of millions of pounds” in extra costs.

Asda chairman Stuart Rose also said the increase would cost the supermarket giant £100million, and inevitably lead to price increases at the checkout.

He explained: "You cannot absorb £100milion of cost. We don’t have a magic money tree in Leeds.”

Meanwhile, Sainsbury's chief executive Simon Roberts, said the supermarket "just didn’t have the capacity to absorb this level of unexpected cost inflation".

Mr Roberts predicted the National Insurance hike would cost the business £140million and added that it would "feed through into higher inflation".