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| Tesco boss warns Reeves against further business taxes | Tesco boss warns Reeves against further business taxes |
| (32 minutes later) | |
| Tesco expects to make a profit this year of up to £3.1bn | Tesco expects to make a profit this year of up to £3.1bn |
| The boss of Tesco has warned the government against adding extra costs to UK retailers in the upcoming Budget. | The boss of Tesco has warned the government against adding extra costs to UK retailers in the upcoming Budget. |
| Ken Murphy said he did not want to see a repeat of the last Budget, when "the industry incurred substantial additional operating costs", adding "enough is enough". | Ken Murphy said he did not want to see a repeat of the last Budget, when "the industry incurred substantial additional operating costs", adding "enough is enough". |
| His comments came as the UK's largest supermarket upgraded its profit forecast for the year. | His comments came as the UK's largest supermarket upgraded its profit forecast for the year. |
| Chancellor Rachel Reeves will reveal her Budget on 26 November, with the widespread expectation that some taxes will increase. | Chancellor Rachel Reeves will reveal her Budget on 26 November, with the widespread expectation that some taxes will increase. |
| Many retailers have argued they have been hit with a wave of extra costs since April, including increased employer National Insurance contributions (NICs) and higher minimum wages. | Many retailers have argued they have been hit with a wave of extra costs since April, including increased employer National Insurance contributions (NICs) and higher minimum wages. |
| Tesco is now also charged for the cost to councils of recycling the packaging of some of its products, under the government's Extended Producer Responsibility (ERP) programme. The company had set aside £90m in ERP levies, which came into force last month. | Tesco is now also charged for the cost to councils of recycling the packaging of some of its products, under the government's Extended Producer Responsibility (ERP) programme. The company had set aside £90m in ERP levies, which came into force last month. |
| "It is, without a doubt, an additional burden on the industry. As was the increase in NICs. As is higher commodity prices. There's a raft of factors impacting the cost of doing business," said Mr Murphy. | "It is, without a doubt, an additional burden on the industry. As was the increase in NICs. As is higher commodity prices. There's a raft of factors impacting the cost of doing business," said Mr Murphy. |
| Tesco said the higher National Insurance rate cost it £235m this year. | Tesco said the higher National Insurance rate cost it £235m this year. |
| Regarding the upcoming Budget, Mr Murphy said: "Our one ask is don't make it harder for the industry to deliver great value for customers." | Regarding the upcoming Budget, Mr Murphy said: "Our one ask is don't make it harder for the industry to deliver great value for customers." |
| The Treasury has been approached for comment. | |
| Mr Murphy's comments came as the retail giant upgraded its profit outlook for the year, saying it now expected to see full-year adjusted operating profits of £2.9bn-£3.1bn. | |
| Tesco said that although intense competition had led it to cut the price of 6,500 items, shoppers were adding more to their baskets and therefore its profits were set to increase. | Tesco said that although intense competition had led it to cut the price of 6,500 items, shoppers were adding more to their baskets and therefore its profits were set to increase. |
| The Unite union said Tesco had "profited from the cost of living crisis". | The Unite union said Tesco had "profited from the cost of living crisis". |
| Unite general secretary Sharon Graham said: "As millions of workers struggle to put food on the table, Tesco is raking in huge amounts of cash and paying out whopping dividends to shareholders. | Unite general secretary Sharon Graham said: "As millions of workers struggle to put food on the table, Tesco is raking in huge amounts of cash and paying out whopping dividends to shareholders. |
| "It is time the Labour government stops being missing in action when it comes to tackling profiteering. Workers must no longer pay the price for corporate greed." | "It is time the Labour government stops being missing in action when it comes to tackling profiteering. Workers must no longer pay the price for corporate greed." |
| Shoppers 'worried' | Shoppers 'worried' |
| Mr Murphy said sales data suggested more shoppers were buying more fresh ingredients to cook meals from scratch, possibly in order to save money. | Mr Murphy said sales data suggested more shoppers were buying more fresh ingredients to cook meals from scratch, possibly in order to save money. |
| The cost of food and non-alcoholic drinks grew across all retailers at an annual rate of 5.1% as beef, butter, milk and chocolate prices continued to surge, official data for August showed. | The cost of food and non-alcoholic drinks grew across all retailers at an annual rate of 5.1% as beef, butter, milk and chocolate prices continued to surge, official data for August showed. |
| Households were perhaps holding off on spending until after the chancellor set out her tax and spending plans, Mr Murphy said. | Households were perhaps holding off on spending until after the chancellor set out her tax and spending plans, Mr Murphy said. |
| "They are concerned and worried about the Budget and the economic outlook," he added. | "They are concerned and worried about the Budget and the economic outlook," he added. |