HMV puts UK expansion on hold because of budget tax rises

Retailer had hoped to open more stores in Britain in coming year but will do so in Ireland and Belgium instead

HMV has put its UK expansion on hold and is to open stores in Ireland and Belgium instead, because of rising wage costs announced in last autumn's budget that begin next month.

Phil Halliday, the managing director of the entertainment retailer, said it had hoped to open up to 10 more stores in the UK in the coming year but had put that plan on hold as it was peddling pretty hard" to maintain profits despite strong sales growth.