Auto Amazon Links: No products found. Blocked by captcha.
The issue of rising food prices in Britain has sparked concerns among supermarket executives, who fear that any potential tax hikes could further escalate costs for consumers. Some of the major grocery chains, including Tesco, Asda, Sainsbury’s, and Morrisons, along with Lidl, Aldi, Iceland, Waitrose, and M&S, have penned a letter to Chancellor Rachel Reeves expressing their apprehensions ahead of the upcoming Budget. The executives emphasized that additional taxes on the industry, such as increased business rates for supermarkets, would inevitably impact households.
According to the supermarket bosses, any rise in taxes on the sector would make it increasingly challenging for them to provide value for customers. The industry is already grappling with mounting costs, and the executives warned that high food inflation is likely to persist into 2026. This grim outlook has led to speculation over the Chancellor’s tax and spending policies as she prepares for the Autumn Budget. Economists have pointed out a significant shortfall in public finances, indicating that tax increases are almost inevitable.
The British Retail Consortium, representing major supermarkets in the UK, stated that retailers are striving to keep food prices affordable amidst the challenging economic landscape. Rising food prices have been attributed to various factors, including poor global harvests, disease, and escalating trade tensions. Supermarkets have been hit with higher taxes and minimum wage bills, adding to their operational costs. Tesco’s CEO, Ken Murphy, has been vocal about the impact of business taxes, emphasizing the need for relief to ensure sustainable operations.
The issue of business rates reforms has also come under scrutiny, with supermarket bosses highlighting concerns about the business rates surtax on large commercial premises. The government’s plan to introduce lower rates for retail, hospitality, and leisure properties is set to impact larger establishments, including distribution warehouses. The supermarkets have urged the Chancellor to ensure that any changes to business rates result in a substantial reduction in the industry’s rates burden. With inflation remaining a top priority for the government, the Treasury assured that business rates would be adjusted to reflect changes in the tax base to maintain revenue levels
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.