Tesco CEO Warns Chancellor Reeves Against Further Tax Burdens Amid Rising Costs

Tesco's chief executive, Ken Murphy, has urged Chancellor Rachel Reeves to avoid further tax increases in the upcoming Budget, warning that the supermarket sector is already under significant financial pressure due to recent rises in National Insurance and new packaging levies. Despite these challenges, Tesco has raised its full-year profit forecast to between £2.9 billion and £3.1 billion, driven by strong sales and consumer demand for value amid ongoing cost-of-living pressures. Murphy emphasized the competitive and difficult market environment for food retailers and expressed concern that additional taxes could hinder their ability to offer affordable prices to customers. There is also concern about proposed business rates reforms that could increase costs for large stores, though Reeves may exclude supermarkets from higher tax brackets to avoid fueling food inflation. Murphy called for a pro-growth, pro-jobs Budget that supports customers and businesses without exacerbating economic difficulties. His remarks reflect wider industry apprehension about the impact of government policies on retail operating costs and consumer prices.