Major retailers in the UK have urged the Government to take action ahead of the upcoming budget, warning that higher taxes will lead to increased prices and a slowdown in investments.

The letter, which was published by the British Retail Consortium (BRC), was signed by chief executives of over 60 UK retailers, including Aldi, Asda, Sainsbury’s, Tesco, Iceland and John Lewis Partnership.

The retail business representatives wrote: “As retailers, we have done everything we can to shield our customers from the worst inflationary pressures, but as they persist, it is becoming more and more challenging for us to absorb the cost pressures we face.

“This year government policy has added £7 billion in new costs to retail businesses, resulting from changes to employer National Insurance, higher employment costs, and the introduction of a new packaging tax. Similar increased costs are also starting to flow through our supply chains.”

The BRC’s letter has been signed by Aldi, Boots, Currys, Ikea, JD Sports, John Lewis, Kingfisher, Lidl and Morrisons. It is expected to attract more signatures in the next few days.

The letter continued: “Labour’s manifesto made a clear and welcome promise to deliver good jobs and higher living standards but if future policy decisions lead to rising prices and fewer jobs, then those commitments are at risk.

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“It is for these reasons we support your plan to reduce business rates on retail, hospitality and leisure. To deliver the improvements to investment the Government seeks, support local employment, and help relieve the pressure on prices, it is essential these changes result in a significant reduction in the industry’s tax burden.”

Over the past few months, retailers have been warning that higher business rates could lead to a slowdown in hiring, a push in inflation and store closures.

Last week The Times revealed that over 100 supermarkets are at risk of closures if the Government increases business tax rates for retailers.