Tesco boss warns Reeves against further business taxes

The boss of Tesco has warned the government against adding extra costs to UK retailers in the upcoming Budget.

Ken Murphy said he did not want to see a repeat of the last Budget, when “the industry incurred substantial additional operating costs”, adding “enough is enough”.

His comments came as the UK’s largest supermarket upgraded its profit forecast for the year.

Chancellor Rachel Reeves will reveal her Budget on 26 November, with the widespread expectation that some taxes will increase.

Many retailers have argued they have been hit with a wave of extra costs since April, including increased employer National Insurance contributions and higher minimum wage.

Regarding the upcoming Budget, Mr Murphy said: “Our one ask is don't make it harder for the industry to deliver great value for customers.”

However, his comments came as the retail giant upgraded its profit outlook for the year, saying it now expected to see full-year adjusted operating profits of £2.9bn-£3.1bn.

The Unite union said Tesco had “profited from the cost of living crisis”.

Unite general secretary Sharon Graham said: “As millions of workers struggle to put food on the table, Tesco is raking in huge amounts of cash and paying out whopping dividends to shareholders.

“It is time the Labour government stops being missing in action when it comes to tackling profiteering. Workers must no longer pay the price for corporate greed.”