Alex Baldock, the outgoing chief executive of electrical retailer Currys, has called on the incoming UK Prime Minister to reverse a tax increase on employers, arguing it makes hiring more difficult and expensive. Baldock urged the next government to "make it less risky, less expensive and less difficult to hire people in large numbers," citing widespread concern over young people not in work or education.
Baldock's remarks come as Currys reported solid trading for its new financial year, with sales boosted by demand for large televisions during the World Cup. The company's profits grew 18 percent to £191 million, and sales climbed 6 percent to £9.25 billion, a performance that contrasted with a general trend of decline among other British firms. Baldock attributed this success to the company's reduced reliance on the domestic consumer environment, including increased sales to businesses and international customers.
Despite these positive results, Baldock noted that consumer confidence in the UK remains gloomy, creating a challenging market for technology. He also highlighted the impact of the 2024 Budget, specifically the surprise increase in employer National Insurance contributions (NICs) announced by Chancellor Rachel Reeves. The rate for employer NICs rose from 13.8 percent to 15 percent in April 2025, with the earnings threshold for payment reduced from £9,100 to £5,000. This change disproportionately affected service sectors like retail and hospitality, which often employ staff on part-time contracts.
Furthermore, Baldock expressed concern that the Labour party's Employment Rights Act could lead to a reduction in hiring. The new legislation mandates that firms offer a guaranteed number of hours to regular workers. Baldock argued that businesses may not be able to afford guaranteed hours that are not always needed, potentially leading to fewer hires and missed sales opportunities, particularly in sectors with fluctuating customer traffic.
Baldock also reiterated calls for a more level playing field in taxation, urging the next government to expedite the closure of a loophole that allows online retailers like Shein to ship low-value parcels to the UK duty-free. While the government has announced plans to scrap this loophole by October 2028, Baldock expressed frustration that overseas firms will maintain a competitive advantage for several more years. He also called for a rebalancing of business rates, noting that rates on physical retail stores have increased more rapidly than those on online warehouses.
Amidst these challenges, Baldock noted positive sales trends driven by the World Cup, with strong demand for items such as barbecues and home beer pumps. Increased consumer interest in health has also boosted sales of wearable technology.