Household goods manufacturer McBride has blamed its inability to pass rising costs on to major supermarkets for its decision to axe up to 250 jobs.

McBride, which produces a number of own-brand household products for Tesco and Sainsbury’s, said yesterday it would be shedding up to 10% of its workforce as it shifts work to a new production centre in St Helens.

The manufacturer currently employs around 2,500 UK workers across sites including Coventry and Warrington.

“The oil price has soared over the last year, pushing up all our costs, but we have not been able to pass that on to customers, as retailers demand the very lowest prices,” McBride chief executive Miles Roberts told the Daily Telegraph.

“We have done everything to try to reduce our costs and improve efficiency, but we have entered into consultation with 10% of our workforce to drastically reduce costs.”

The news comes after McBride reported a 47% drop in pre-tax profits in the year to June 30 to £15.7m.