The chief executive of Sainsbury's has warned Chancellor John Healey not to repeat the tax increases seen in previous Labour budgets, as the government prepares to deliver its Autumn Budget on Wednesday.
Call for Business-Friendly Policies
Simon Roberts, who leads the UK's second largest supermarket chain, said he believes the current government is "listening" after taking part in "positive" talks at No 11 Downing Street last week. He urged the Chancellor to avoid further significant increases to business taxes and labour costs.
"I think this Government is listening to business. We've had the opportunity to meet with figures from Government and stress that it is really important we don't see a repeat from previous budgets," Mr Roberts said.
Reform and Consumer Pressures
The supermarket executive called for positive reform to the business rate tax system, measures to encourage businesses to hire, and increased capacity rules linked to farming investments. He also warned that "many households are finding things tough at the moment" amid pressure on consumer budgets.
Sainsbury's said it has benefited from pricing measures such as its loyalty Nectar Prices and its Aldi Price Match comparison scheme, which have helped attract more customers. On Thursday, the retailer improved its profit outlook after reporting stronger grocery sales over the past half-year, with shoppers buying greater volumes of products as price inflation slowed.
Argos Sale and Budget Decisions
In July, Sainsbury's agreed to sell Argos for at least £120 million to Swift Partners, a new company set up by retail experts including former Co-operative Group boss Richard Pennycook, around 10 years after buying the brand for £1.4 billion.
"As we progress the sale of Argos and further sharpen our focus on food, we are building a simpler, more focused Sainsbury's," Mr Roberts said. "With great value, outstanding quality and exciting new food across our ranges, we're looking forward to helping customers enjoy a really special Christmas."
John Healey earlier rejected calls to announce a major tax change in the Budget amid concerns it could hamper economic growth. Several prominent Labour voices have called for a rise in capital gains tax, which applies to profit from selling assets like a house or shares, but Healey has ruled out the move after warnings it could cost the government money if wealthy people leave the country or defer selling assets.
