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Tesco warns 'enough is enough' on business taxes

2025-10-02 18:00:03
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, saying "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".

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.

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.

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.

"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."

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.

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.