Britain’s retailers face having to cut more jobs, drive harder bargains with labor unions and stagger pay increases to absorb the shock tax rises in the government’s revenue-raising budget that kick in this year.

Sainsbury's has announced it will cut 3,000 jobs as it shuts down its remaining cafés and closes its patisserie and pizza counters. The supermarket says the move will "simplify the business", adding that most Sainsbury's shoppers "do not use the cafés regularly".

The grocer said the layoffs are part of a simplification of its central divisions and management structures, and include a 20% reduction of senior management roles.