"Asda's chairman Allan Leighton has delivered a sharp warning to Chancellor Rachel Reeves, accusing her of "taxing everything" and urging the government to focus instead on investment to drive growth. Speaking as speculation grows that Reeves will need to raise an additional £50 billion in her Autumn Budget to balance the books, Leighton said the government's fiscal approach was already hitting retailers, pushing up inflation and leaving consumers worse off."
"The comments come as retailers continue to grapple with rising costs following last year's £40 billion package of tax rises. According to the British Retail Consortium, annual costs for the sector have jumped by £7 billion, driven by increases in employer national insurance contributions, higher minimum wages and new packaging taxes. Asda, alongside Tesco, Sainsbury's, John Lewis and other major retailers, wrote to Reeves last week warning that they could not absorb further hikes."
Allan Leighton warned that broad tax increases are reducing consumer spending and weighing on retailers. Speculation suggests Chancellor Reeves may need to find an additional £50 billion in the Autumn Budget to balance the books. Retail sector costs have risen by £7 billion annually after last year's £40 billion of tax measures, driven by higher employer national insurance, increased minimum wages and new packaging taxes. Major retailers warned they cannot absorb further hikes and said higher bills would feed through to shoppers as higher prices, harming living standards and investment. Proposed revenue options include taxes on high-value homes, higher business rates and levies on banks and gambling.
Read at Business Matters
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