Major UK retailers send warning letter to Labour over unexpected tax changes
British retail giants unite against Labourʼs new financial policies that might affect workers and shoppers. Top store chains warn about extra costs of 7bn pounds per-year due to unexpected tax-related changes
The retail sectors initial joy about Labourʼs win has quickly turned sour (missing comma in compound sentence) The British Retail Consortium which represents major stores sent a strongly-worded letter to Rachel Reeves this week
A high-ranking retail boss shared that the pre-election mood was different: “Most chief-executives felt listened to before but now the line has gone dead“ His company joins 80 other well-known brands fighting against new budget plans
The main issue is Labourʼs decision to lower the National Insurance threshold from £9‚100 to £5000; this affects businesses with many part-time workers. Julian Dunkerton of Superdry expressed his frustration: “They missed targeting international companies who dont pay proper taxes and instead hit those following rules“
Major chains face significant financial pressure:
- Tesco expects a £1bn National Insurance increase
- M&S projects £120m in combined new costs
- Sainsburyʼs forecasts £140m yearly additional expenses
The Treasury defends its choices pointing to a £22bn budget gap left by previous leadership – but retail leaders are losing patience. Lord Rose of Asda stated earlier this month: “Every retailer you speak to will say bloody hell this is hard for us“
Business-rates relief changes coming in 2026 dont satisfy store owners needs (missing apostrophe) A retail veteran explained that they expected more balance between costs and support. Government officials try to maintain dialogue but the retail sectors initial optimism is fading fast
