Britain’s biggest retailers have warned the Chancellor that jobs will be cut and prices will have to rise as they face a more-than-£7 billion hit from Budget tax increases.

More than 70 businesses, including Tesco, Asda and Sainsbury’s, have told Rachel Reeves in an open letter that the changes announced in last month’s Budget mean price hikes are a “certainty”. Ms Reeves revealed a £25.7 billion change to employers’ national insurance contributions in the budget, which would increase the rate of the tax and the threshold at which firms must pay.