Tesco Boss Warns Shadow Chancellor: Don't Make Business Rates Harder
Rachel Reeves, the Shadow Chancellor, is considering measures to soften the impact of business rates changes on large stores, including supermarkets. However, Tesco's boss, Ken Murphy, has warned her about the struggles businesses face in absorbing more costs in the upcoming Budget.
Tesco's annual national insurance payments have seen a significant increase of £235m, while the Extended Producer Responsibility (EPR) packaging levy adds another £90m to their annual bill. Reeves is exploring options to reduce the tax burden increase on commercial premises in London, including potentially excluding small businesses or certain key sectors.
If Reeves does not change course, business rates could rise by an estimated 26% across London. UK retailers are already grappling with higher labour costs due to the minimum wage increase and national insurance changes from last October's budget. Despite these challenges, Tesco has increased its profit guidance for the current financial year to between £2.9bn and £3.1bn. Murphy has urged Reeves not to make the business environment harder for Tesco and other retailers.
Reeves's plans to soften the blow of business rates changes for large stores are being scrutinised by Tesco's boss, who warns of the struggles businesses face in absorbing more costs. With potential rate increases and higher labour costs, retailers, including Tesco, are navigating a challenging environment.
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