Sat, 25 Oct 2025

Sat, 25 Oct 2025 Tax rises could push food prices higher, warn supermarkets

The bosses of the UK's largest supermarkets warn the chancellor against imposing higher taxes on the industry.

* Supermarket bosses warn that food prices could rise even further if higher taxes are imposed on the sector
* Grocers including Tesco, Asda, Sainsbury's and Morrisons sign a letter to Chancellor Rachel Reeves warning of potential tax increases
* Industry claims that households will "inevitably feel the impact" of any tax hikes
* Treasury says tackling food price inflation is a priority, but business rates for supermarkets may increase
* Supermarket bosses claim they are facing £7bn in additional costs due to higher taxes and minimum wage bills
* Food prices have surged due to poor harvests globally, disease and droughts affecting yields, and escalating trade tensions
* Retailers say it's an "uphill battle" to keep food prices affordable, with many staples seeing price hikes of over 10%
* Chancellor Rachel Reeves is expected to increase taxes following gloomy economic forecasts and a series of U-turns on cuts to welfare spending.
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