Tesco, Sainsbury’s and Asda have warned Rakeli they are reconsidering that tax increases could drive up food prices
Managers of major supermarket chains have warned that food prices could rise again if Chancellor Rachel wants to increase tax on the retail sector in its distribution.
In a joint letter to the Treasury, the managers of Tesco, Sainsbury’s, Sains, Morrisons, Aldi, Lidl, WireRose, Wailand, certainly warned of the impact “of any increase in business rates or other taxes in the industry.
“Given the costs currently falling on the industry, including the final budget, high inflation is likely to continue into 2026,” the letter said. “This is not something we want to see long-term by any measure in the budget.”
The intervention of supermarkets comes in the midst of a re-estimation that will reveal new tax methods to connect the deficit of $ 22 in public funds, following the office to find a reduction in the budget of the budget of the growth forecast.
In particular, retailers are worried about the government’s plans for a “business rate surtax” on large commercial establishments – a move expected to hit supermarkets and distributors Hubs Hubs Hubs Hubs Hubs Hubst.
Under the proposed changes, small shops and hospitality establishments with a maximum value below £500,000 will benefit from lower rates, while larger properties above the supermarket threshold – will face higher costs.
The British Retail Consortium (BRC), which represents the largest grocers in the country, said that COST STORES account for a small share of retail outlets but contribute one-third of book business values.
BRC chief executive Helen Dickinson said: “Retailers are doing everything they can to keep food prices down, but it’s a battle with costs rising by just over 7%.”
Reeves faces one of the toughest financial tests of his tenure ahead of the autumn budget on 26 November. After the £40 billion tax package of £40 billion
However, analysts at the Institute for Financial Studies (ifs) warn that weak growth, rising borrowing costs and unprecedented spending pressures will likely require further tax increases.
The chancellor has written that “those with broad shoulders should pay their fair share”, but economists doubt that a tax aimed at the partnership of technology or the rich can raise enough money without extensive measures.
Food inflation, which will top 19 percent in 2023, has slowed but remains above pre-pandec levels. The Office for National Statistics (ANTS) reports that the prices of products such as butter, milk, chocolate and coffee have increased between 12 and 19 percent per year.
Traders say additional financial pressure could push prices higher into 2026, especially as sectors are reeling from global shocks, poor harvests, and rising costs.
Tesco chief executive Ken Murphy said recently that “enough is enough” in tax purchases, revealing that the top national contributions have already lost the company £235 million this year.
Despite those pressures, Tesco expects a profit of up to £3.1 billion in the full year, while lidl reports its pre-tax profit is set at more than $156.8 million in the year to February.
A Treasury spokesman said dealing with foreign countries “remains a priority” and highlighted the latest measures to cut business rates for small retailers, including butchers, bakers and supermarkets.
They added: “Business prices will be adjusted to reflect changes in property prices so that the program increases the equivalent amount of money in real money. Even if the Propeation of the property increases,”
