Ocado’s chief executive, Tim Steiner, stated that the newly proposed budget from Chancellor Rachel Reeves would lead to price increases in stores.

He stated that the budget may lead to higher costs, and it will be “unrealistic” for the new plan not to spike the costs of food, according to a report by The Telegraph.

Steiner said: “Am I surprised to see inflation coming through? Of course not. You can’t increase the cost of labour in food production and food distribution and food retailing in the way that we have, with national insurance increases and the minimum wage increases, and not expect to see prices move.

“That would have been a wholly unrealistic expectation if anyone had that.”

The statement comes on the heels of higher inflation in June, with food and drink inflation rising by 4.5% in the UK.

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Retailers have previously warned that the higher national insurance fees will lead to increased inflation, as well as mounting pressure due to higher living wages.

Additionally, retailers are expressing worry over the potential business rate increase, with M&S calling out the plan that may lead to added costs for consumers.

Dee Corsi, chair of High Streets UK added: “The latest figures on the UK jobs market are a reminder that the growing cost of doing business has a tangible impact on the prospects of working people. With trading conditions already challenging and margins in sectors like retail, hospitality, and leisure razor-thin, businesses can no longer absorb any further costs.

“The Government’s proposed business rates reforms—which would dramatically raise the rates bill for anchor stores across the country—will place an unsustainable burden on flagship city centre high streets. These locations are key drivers of economic growth and job creation, but current plans put that at risk.”

However, the government has reassured business executives that the new tax rates are not targeted towards supermarkets, and there is a possibility of retailers being exempt.