Retailer says festive trading was better than expected but forecasts UK sales growth will slow this year

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Next has said it will increase prices by 1% this year to help offset a £67m rise in wage costs driven by tax changes announced in the government’s autumn budget.

The fashion and homewares retailer also said UK sales growth was likely to slow as the tax increases for employers and their potential impact on prices and the job market “begin to filter through into the economy”.