Halfords has announced that they may have to raise prices after the Autumn Budget (Image: Getty)
The vehicle accessory retailer and service provider has warned customers that it could soon be forced to drive up prices following new measures introduced in the .
Whilst many drivers were relieved by the extension of the announced in the Labour Government’s first budget, the company noted that other changes made by Chancellor Rachel Reeves were not so welcome.
In particular, implications of the (NICs) rise in April 2025 are expected to cost the company an additional £23 million per year.
, who employ more than 12,000 Brits, stated that offsetting the extra expense will be a difficult task.
They explained: “We anticipate being able to pass through more easily in the Autocentres business, where a greater proportion of revenue relates to services.”
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Halfords employs over 12,000 people, meaning a wage rise would cost them £23 million more per year (Image: Getty)
The changes announced in the budget come at a time in which Halfords’ pre-tax profits fell to £12.8 million over the six-month period between March and September 2024 – a decrease of 23.3 percent.
According to the company, the reduction was largely caused by more challenging retail conditions, and warned that increasing shipping costs could also have a significant impact on future profits.
Nevertheless, the fall in profits was saved somewhat thanks to Halfords’ network of Autocentres, which only fell by 1.4 percent in the same six-month period.
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The company urged the Government to change the Apprenticeship Levy in a push to support businesses (Image: Getty)
Graham Stapleton, CEO of Halfords, urged the Government to make changes to the Apprenticeship Levy, which could help to support a wide range of businesses.
He added: “The cost implications from the recent UK Budget are particularly acute for a specialist retailer that provides expert advice and assistance to customers, face to face.
“While we will work hard to mitigate these costs, we urge the Government to consider alternative ways of supporting businesses like ours, including the acceleration of Apprenticeship Levy reform, which would help us to upskill existing colleagues and offset some of the new headwinds.”
The announcement comes at a time in which many companies within the automotive industry are making cuts, with Ford and Vauxhall both announcing job losses in the same month.
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, urged the Government to review measures enforced on the industry, particularly surrounding the transition to electric models.
He continued: “The industry is hurting; profitability and viability are in jeopardy and jobs are on the line. When the world changes, so must we. Workable regulation – backed with incentives – will set us up for success and green growth over the next decade.”