Anna Blackburn, managing director of Beaverbrooks, has called on the government to ease business costs as the firm reported a 9% drop in underlying operating profit to £7.8m last year. The decline followed increases in employer national insurance contributions (NICs) and the legal minimum wage introduced by former chancellor Rachel Reeves. Total sales for the group, which operates 56 Beaverbrooks and four Loupe stores, fell 0.1% to £217m.

Blackburn emphasized that the jewellery industry is performing strongly despite the challenging retail market. She urged the government to focus on boosting consumer confidence and providing stability by addressing unemployment and inflation, rather than introducing new taxes in the upcoming budget. She argued that further cost increases would be detrimental to business growth and confidence.

The firm is investing in store modernization, online operations, and new product development, with plans to open its fourth Loupe boutique in Sheffield and revamp outlets in Manchester and Essex. Blackburn highlighted the importance of the high street and exceptional customer service in maintaining the company’s 107-year legacy.

Blackburn’s comments follow criticism from other retailers. Former John Lewis boss Peter Ruis described the chancellor’s budget as a critical period for retailers, while JD Sports’ boss called the simultaneous rise in NICs and minimum wage a ‘wrong movement’ that could lead to reduced hiring of young workers.

The government faces a difficult budget scenario due to high oil prices and borrowing costs, which are also affecting household bills. Chancellor John Healey is reportedly considering shifting green subsidies from energy bills to general taxation, while examining fuel duty and targeting support for the poorest households.

The situation remains unclear regarding potential policy changes or further statements from affected businesses. The impact of the proposed budget measures on the retail sector and broader economy remains uncertain.