Tesco Boss Ken Murphy Warns Chancellor Against New Business Taxes Amid £3.1bn Profit Boost

Tesco Boss Warns Reeves Against Further Business Taxes as Retailer Upgrades Profit Forecast to £3.1bn The UK's largest supermarket, Tesco, has upgraded its profit forecast for the year to up to £3.1 billion, but its boss, Ken Murphy, has warned Chancellor Rachel Reeves against imposing further business taxes in the upcoming Budget. Murphy's comments come as the retail industry continues to grapple with increased costs since April, including higher employer National Insurance contributions (NICs) and minimum wages. The industry is also facing a new tax on packaging waste under the Extended Producer Responsibility (ERP) programme, which has seen Tesco set aside £90 million in levies. The ERP tax is expected to cost UK producers £1.1 billion, according to the Food and Drink Federation (FDF). This additional burden on retailers comes at a time when many are still reeling from the effects of inflation, supply chain disruptions, and rising energy costs. Tesco's upgraded profit forecast suggests that the retailer has managed to navigate these challenges so far, but Murphy's warning to the government is clear: "enough is enough". He is urging Chancellor Reeves to consider the impact of further business taxes on the retail industry, which has already incurred substantial additional operating costs in the last Budget. The market implications of this situation are significant. A further increase in business taxes could lead to higher prices for consumers, reduced investment in the sector, and potentially even store closures. This would have a ripple effect throughout the economy, impacting not just retailers but also suppliers, employees, and local communities. Stakeholders are already reacting to Tesco's warning. The FDF has echoed Murphy's concerns, stating that "further tax increases will only serve to exacerbate the challenges facing the food and drink industry". Meanwhile, some analysts have suggested that Chancellor Reeves may be forced to reconsider her plans for business taxes in light of Tesco's upgraded profit forecast. Looking ahead, it remains to be seen how the government will respond to Tesco's warning. The upcoming Budget on 26 November will provide crucial insight into the government's plans for business taxes and their impact on the retail industry. One thing is clear: the stakes are high, and the consequences of further business taxes could be far-reaching. In conclusion, Tesco's upgraded profit forecast and Ken Murphy's warning to the government serve as a timely reminder of the challenges facing the retail industry. As the sector continues to navigate increased costs and uncertainty, it remains to be seen how the government will balance its fiscal priorities with the needs of businesses like Tesco. *Financial data compiled from Bbc reporting.*