US EditionTesco warns 'enough is enough' on business taxes
Tesco upgraded its profit forecast despite rising costs from tax hikes and operational expenses, warning Chancellor Rachel Reeves that further tax increases could worsen food inflation and consumer pressure.
- Ken Murphy, Tesco's chief executive, warned Chancellor Rachel Reeves that next month's Budget could harm food retailers and urged her to avoid higher taxes, stating, 'What we'd love to see is a Budget that's pro-growth and pro-jobs which, as a result, will help customers with the cost of living.'
- Facing rising costs, Tesco highlighted added expenses from employer National Insurance and new packaging levies, while British households face pressure prompting cuts to 6,500 products with around 9 per cent reductions last year.
- The upgraded guidance reflects stronger results as Tesco raised its full-year outlook to between 3.1 billion and 3.1 billion, supported by adjusted operating profit of 1.67 billion in the first half of 2025 and UK sales up 4.9 per cent.
- Murphy warned that previous budget moves have already raised operating costs and urged restraint, pressing for large retailers to be excluded from higher tax rates in Labour's rates reforms.
- Persistent competitive intensity and elevated inflation suggest continued strain for grocers through the year as economists expect food inflation above 5pc into next year, and Murphy said British shoppers worry about what lies ahead while Tesco prepares for Christmas trading.
11 Articles
11 Articles
Do Not Make It Harder for Grocers to Lower Prices, Tesco Boss Urges Government
The boss of Tesco has made a plea to the Government to not “make it harder” for the grocery sector to keep prices low for customers ahead of the autumn Budget, despite revealing profits could surpass £3 billion this year. Households budgets remain squeezed and shoppers are increasingly seeking out value, according to the UK’s biggest supermarket. Ken Murphy, Tesco’s chief executive, said he was hoping the autumn Budget would not put additional p…
Rachel Reeves begged by Tesco to not burden supermakets: 'Enough is enough'
Britain's largest supermarket chain has issued a warning to Chancellor Rachel Reeves about the potential impact of next month's Budget on food retailers if taxes are raised once again.Tesco's chief executive Ken Murphy has called on the Labour Government to avoid measures that would increase the burden on grocers, with many supermarket giants criticising the recent hikes to National Insurance and the National Living Wage.Mr Murphy said: "What we…
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