The next one warns of a slowdown in UK growth after the tax increase

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High street retailer Next has warned that the pace of growth in the UK will slow this year as the impact of tax increases in the Budget begins to affect the wider economy.

The high street bellwether expects annual pre-tax profits to rise by £5mn to more than £1bn after strong full-price sales over the festive period.

But the chancellor Rachel Reeves said changes to national insurance contributions would start to filter into UK sales growth as “employer tax increases, and their potential impact on prices and employment”.

UK full price sales are expected to grow by 1.4 per cent in the next financial year, down from 2.5 per cent in the 12 months to 28 December.

However, the Retailer It still forecasts 3.6 percent profit growth for the year to January 2026.

This is a developing story.