Thu, 02 Oct 2025

Thu, 02 Oct 2025 Tesco warns 'enough is enough' on business taxes

Ken Murphy says he does not want more costs to be added onto business, and calls for a "pro-growth" Budget.
Tesco boss Ken Murphy has urged the government not to increase costs on retailers in the upcoming Budget, saying it would be "enough is enough" after the industry incurred significant extra costs in the last one. The supermarket chain has upgraded its profit forecast for the year, but Murphy warned that additional taxes and charges could have a negative impact. He cited examples of increased employer National Insurance contributions, higher minimum wages, and the government's Extended Producer Responsibility (ERP) programme, which is costing Tesco £90m. The Food and Drink Federation predicts this tax will cost UK producers £1.1bn, more than the impact from the hike in NICs. Murphy said that these new taxes are an "additional burden" on retailers and would inevitably lead to higher prices for consumers. Despite these challenges, Tesco has reported a stronger-than-expected profit outlook of £2.9-3.1bn for the year. The company attributes this to customers buying more items despite price cuts on 6,500 products. However, Unite union general secretary Sharon Graham criticized the company for profiting from the cost of living crisis. Murphy said that sales data suggests households are holding off on spending until after the Budget, and that shoppers are opting for fresh ingredients to cook meals from scratch possibly in an effort to save money.
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