In addition to raising prices to help pay rising labor costs.

Next has said it will make an “undesirable” price increase to help offset a £73m pay rise for staff.

The high street retailer said costs would rise due to measures announced in the autumn budget, including higher National Insurance payments by employers as well as a rise in the national living wage.

Next expects prices to rise 1%, which it said is lower than the current rate of inflation.

More than half of companies plan to raise prices over the next three months to help offset higher costs, according to the British Chambers of Commerce business group. said this week,