Pets at Home CEO Lyssa McGowan has warned that the changes to National Insurance in the Budget will negatively impact flexible and part-time workers, as well as women.

Speaking to the Mail on Sunday, McGowan highlighted that the retail sector faces an £18m hit from the changes, which have contributed to a 33% fall in the company’s share price over the past six months.

“This came as a big surprise to business,” McGowan said. “If they [the government] had consulted more widely, they might have realised the impact on young, flexible workers, as well as part-time workers and women.”

The National Insurance contribution threshold will be lowered from £9,100 to £5,000 per employee from April, meaning employers will face higher costs for part-time staff.

McGowan added, “It’s more expensive now to have two part-time employees than to have one full-time employee doing the same job. But it’s done. It is what it is.”

The budget measures are having a significant impact on Pets at Home, which operates over 450 stores and McGowan’s comments come as the retailer continues to face pressure from other areas, including an ongoing investigation into the veterinary sector.

The Competition and Markets Authority is investigating allegations that veterinary charges have become too high, partly due to the consolidation of independent practices. More than half of UK veterinary clinics are now owned by just six corporations, including Pets at Home.

McGowan defended the private veterinary sector, explaining that pet healthcare costs can be a shock for UK consumers who are more accustomed to the NHS system. “In the UK, people don’t understand how much healthcare costs because of the NHS,” she said.

“If you go to the US, people are much more au fait with how much an MRI, for example, costs, or an operation. Here, it can quite often come as a shock.”

Click here to sign up to Retail Gazette‘s free daily email newsletter