Primark’s owner is urging the Labour Government to reconsider proposed tax plans, which some retailers warn could detrimentally impact their business in the months to come.
The chief executive of Associated British Foods has criticised Government plans to reform business rates, arguing the changes would place undue financial strain on major retail outlets across Britain’s high streets.
George Weston, whose company owns the Primark chain, has called on Chancellor Rachel Reeves to refrain from imposing additional business taxes when delivering her Budget in November.
The billionaire executive described the proposed alterations as “mistaken”. His intervention follows mounting concern within the retail sector about the cumulative impact of recent tax increases on commercial operations.
The Chancellor is being urged to ‘reconsider’ rumoured tax changes by Primark’s boss
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Industry analysis indicates that approximately 363 major retail premises would bear the brunt of the proposed changes, facing collective additional charges of £45. million annually when the new system takes effect in April.
The British Retail Consortium (BRC) has raised alarms that up to 400 large-format stores could be jeopardised by the Government’s rumoured business rates surtax.
These reforms target properties valued above £500,000, with the intention of reducing costs for smaller high street businesses.
However, this redistribution means larger retailers and supermarkets will shoulder increased financial burdens to offset the relief provided to their smaller counterparts.
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“We are pleased that Government had recognised that there have been problems with the business rates system,” Mr Weston stated. “But the changes mean there is going to be particular pressure on big stores which are needed to anchor high streets, and I think that was a very mistaken policy.”
The executive added: “We would love to see that reconsidered.”
Primark operates 460 outlets internationally, including over 190 locations throughout the UK.
Mr Weston emphasised that recent rises in labour costs and packaging taxes have already affected businesses, warning: “My message to Government is that that should not increase taxes on businesses any more.”
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Tax consultancy Ryan has calculated the financial implications of the proposed surtax, with property tax practice leader Alex Probyn offering sharp criticism of the government’s approach.
“This is a stealth tax penalising the very businesses that anchor our high streets and provide mass employment,” Mr Probyn said.
“The largest stores are already major contributors to the tax base, and an additional levy will undermine their ability to invest, grow and support local economies.”
He argued the measures contradict the government’s stated aims, adding: “It also runs directly contrary to the Government’s policy objective of supporting our high streets and the retail sector.”
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The Chancellor is under pressure
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GBNEWSWhen announcing the Autumn Budget’s November 26 date, the Chancellor shared: “Britain’s economy isn’t broken. But I know it’s not working well enough for working people.
“Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change. We’ve got huge potential – world-leading brands, dynamic industries, brilliant universities, and a skilled workforce. We’re a global hub for trade.
“Fixing the foundations has been my mission this past year. We raised the minimum wage for three million people. Cut NHS waiting lists. Started tearing up planning rules to build 1.5 million new homes. Promised billions more for the country’s infrastructure. Secured trade deals with the US, India, and the EU.
“And changed Treasury rules so investment reaches every part of the country. But I’m not satisfied. There’s more to do. Cost of living pressures are still real. And we must bring inflation and borrowing costs down by keeping a tight grip on day to day spending through our non-negotiable fiscal rules.”