Ken Murphy, the CEO of Tesco, has urged the UK government to refrain from imposing additional costs on retailers in the forthcoming Budget. He expressed concern that the previous Budget led to significant operating expenses for the industry, stating, “enough is enough.” His remarks coincided with Tesco’s announcement of an upgraded profit forecast for the year, which anticipates adjusted operating profits between £2.9 billion and £3.1 billion.
Chancellor Rachel Reeves is scheduled to present the Budget on November 26, amidst widespread speculation regarding potential tax increases. Several retailers have reported facing increased costs since April, notably due to raised employer National Insurance contributions and the rising minimum wage.
In light of the upcoming Budget, Murphy emphasized the importance of supporting the industry, saying, “Our one ask is don’t make it harder for the industry to deliver great value for customers.” This statement raises questions about the balance between fiscal policy and the operational viability of major retailers like Tesco.
In response to Tesco’s financial performance, the Unite union criticized the supermarket, alleging that it has profited significantly during the ongoing cost of living crisis. Sharon Graham, the union’s general secretary, called attention to the disparity between corporate profits and the struggles of workers, asserting that Tesco is distributing substantial dividends to shareholders while many employees are facing economic hardships.
As discussions regarding the Budget continue, the implications for both consumers and retailers remain a critical consideration for policymakers.
Source: https://www.bbc.com/news/articles/c784q26v57vo?at_medium=RSS&at_campaign=rss