Tesco, Sainsbury’s, John Lewis and Boots are among a list of retailers that have warned Chancellor Rachel Reeves that additional tax increases will undermine Labour’s promise to improve living standards in the UK.
The retail giants claimed that food price inflation could rise to 6% this year following the government’s decision to raise taxes and increase the national minimum wage.
They warned the government risks breaching its manifesto pledge to provide “good jobs and higher living standards”, as companies will not be able to “absorb” any more costs.
The businesses, which are represented by the British Retail Consortium (BRC), raised concerns over the government’s plans to raise business rates on larger stores with a rateable value of more than £500,000 next year in exchange for lower taxes on smaller properties.
The Financial Times reported last week that the higher taxes, which will be confirmed at the Autumn Budget, could tip more than 100 supermarkets run by the UK’s biggest grocers into the red as costs pile up on the industry.