Big retailers including Myer, David Jones, Harvey Norman, JB Hi Fi and big discount chains Big W, Kmart and Officeworks who are facing major operational cost increases next year, due to new laws introduced by the Federal Labor Government may need to look at how UK Curry’s are handling their A$63 million in cost increases following the election of a labor Government whose policies are now hitting retailers where it hurts.

Curry’s boss Alex Baldock (seen below) has told Retail Gazette that he said he won’t allow the retailer’s growth to be “interrupted” as the electricals giant prepares for its tax bill to rise A$64m from April next year.

He claims price rises will be “inevitable” as it prepares to face extra costs after the new UK Government introduced their first Budget, which observers claim is anti business.

Baldock, warned that policies announced recently by the UK by the Chancellor will “depress investment and hiring” plans.

In Australia several retailers that ChannelNews claim that the current Labor Government has handed too much power to trade unions who are now threatening retailers. They also claim that changes to employment laws are also set to hurt retailers.

In Australia Harvey Norman Chairman Gerry Harvey has issued a grim warning about Australia’s future, predicting the country is heading into a “great big black hole”.

He has singled out debt alongside high inflation and interest rates following recent announcements by the current Labor Government.

Rob Scott, the CEO of Wesfarmers, the owner of Officeworks, Kmart, Target and Bunnings has warned that the rise in industrial action, such as the Woolworths warehouse worker strike, will increase supply chain costs and worsen inflation.

He has called for a rollback in industrial relations laws.

Scott claims that businesses will have to manage the cost-of-living challenge for the rest of the year.

He has also warned that the increase in minimum wage will be difficult for businesses to absorb and that any sustained economic improvement will require a moderation of government spending. He has also hit out at new workplace regulations introduced by the Federal Labor Government could lead to job losses and price increases as retailers look to recover via price rises the cost increases that the new policies are having on retailers.

Wesfarmers chief executive Rob Scott is also increasingly alarmed about the rise in industrial action as reflected in the current bitter dispute between Woolworths and warehouse workers that left supermarket shelves empty.

“The unions want to run this country, and this is a dangerous situation. The pay rises they want are not sustainable and when businesses start laying off employees, they blame business not their own actions” claims a major retailer who does not want to be named fearing union retribution.

Gerry Harvey claims that Australia “much worse” off in five years’ time”.

According to Curry’s CEO “We’ve already got plans to deal with about half of these headwinds, and we’re working hard to get after the rest, which will inevitably mean further cost reduction,” he said.

“We’ve got growing momentum at Curry’s. We won’t allow this to be interrupted,” he added.

His comments come as the retailer revealed it had shrunk its pre-tax losses from A$88m to A20Mm in the half year to 26 October as sales edged up 1% to £A47.7 billion.

Baldock warned the additional costs would lead to “inevitable” price rises, but that it was a “last resort” for the business.

“It was an unhelpful budget for jobs, prices, investment and growth, but I also understand that the government has difficult decisions to make, and my job is to make sure that Curry’s is successful whoever’s in power,” he added.

Baldock was not the first UK retailer to speak out on the extra costs it faces from Chancellor Rachel Reeves’ first Budget.