In a blistering critique of the Chancellor's economic strategy, the boss of Primark's parent company has condemned Rachel Reeves' planned business rates reform as a damaging 'anti-retail' tax grab that will punish the high street and hurt consumers.
George Weston, chief executive of Associated British Foods, issued the stark warning as the retail giant reported a surge in half-year sales. He argued that the current system, while flawed, is at least predictable for businesses trying to navigate a challenging economic climate.
A System in Need of Careful Reform
Weston acknowledged the system requires modernisation but cautioned against a hasty overhaul that could have severe unintended consequences. 'What we have at the moment is a system that we all understand,' he stated. 'It might be a bad system, but it is a system. To change it risks making it worse.'
His central concern is that the Chancellor's proposed changes will simply result in a higher overall tax bill for brick-and-mortar retailers, who are already struggling under the weight of high energy costs and wage inflation.
The Inflationary Threat to Consumers
The most alarming outcome, according to Weston, would be the inevitable pass-through of these higher costs to shoppers. 'If the total tax take from retail goes up, that will be inflationary,' he warned. This would directly contradict the Bank of England's efforts to curb inflation and would squeeze household budgets even further.
The critique places the new Labour government under immediate pressure from one of the UK's most prominent business leaders. It signals a rocky road ahead for Reeves as she attempts to balance fiscal responsibility with pro-growth policies.
With Primark being a major employer and a staple of the British high street, Weston's comments carry significant weight and highlight the delicate task the government faces in stimulating economic growth without stifling business investment.
