Primark owner delivers warning to Rachel Reeves over ‘mistaken’ rate changes
Retailer says larger stores to come under pressure from rate changes
- George Weston, CEO of Associated British Foods (ABF) and parent company of Primark, has warned the government against increasing taxes on businesses, particularly regarding proposed changes to business rates.
- Weston urged the Labour Government not to raise taxes on businesses further in the forthcoming November Budget, highlighting existing cost increases such as national insurance and the national minimum wage.
- Chancellor Rachel Reeves faces the challenge of boosting Treasury revenues to address a potential £40 billion deficit, intensifying concerns that businesses could be targeted with further tax hikes.
- Primark, which operates over 190 stores in the UK, is expected to face significantly higher business rates under the new proposals, which shift the burden to larger retailers.
- The British Retail Consortium and tax firm Ryan have warned that a new business rates surtax could jeopardise 400 large-format stores, costing them an estimated £45.8 million annually and undermining investment.