Tesco has begun trialling reduced opening hours in some of its Express convenience stores, as it looks to manage a sharp increase in staffing costs caused by recent government tax changes.

The UK’s largest supermarket is piloting earlier closures at a small number of lower-performing sites, known internally as “Express Lite” stores, reported the Telegraph. These stores are closing at 10 pm instead of 11 pm, with fewer staff operating on shifts.

The move follows the Chancellor’s spring Budget, which saw National Insurance employer contributions rise to 15% from 13.8%, alongside a drop in the contribution threshold and a 6.7% increase to the National Minimum Wage. Tesco says these changes will add £235m to its wage bill this year.

In total, UK retailers face an estimated £7bn in additional costs from the Budget, according to the British Retail Consortium.

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Tesco CEO Ken Murphy said in April that the retailer plans to strip out £500m in costs to protect margins while investing £400m in price cuts.

“All we’re saying as an industry is, don’t make it too hard for us to keep delivering great value,” he said.

The retailer has told staff that the changes are focused on operating efficiency and simplifying store routines, with no redundancies expected. However, some staff may be asked to transfer to other locations, depending on shift availability.

A Tesco spokesperson told the publication: “These changes aren’t visible to our customers, who will continue to receive the same great service they expect, and there are no changes to the range of products we sell.”

Trade union Usdaw said it had not agreed to the changes and was monitoring the impact closely.

Usdaw national officer Daniel Adams said: “The union has repeatedly raised issues with the business around the risks of low staffing and retain significant concerns around how this trial will work.”

He warned that while job losses weren’t expected, reassignments could still cause disruption for workers with caring responsibilities or travel limitations.