The parent company of high-street giant Primark has delivered a blunt warning to Chancellor Rachel Reeves ahead of her crucial autumn budget, urging her not to deliver another "great whack" to already fragile consumer sentiment.
Associated British Foods (ABF), which owns the popular value retailer, reported a significant slump in its annual profits, highlighting the intense pressure on household budgets. The company's finance director, John Bason, stated that while there are "glimmers" of hope, consumer confidence remains exceptionally vulnerable.
The core of the warning centres on the Chancellor's upcoming fiscal decisions. Bason explicitly cautioned against any new policies that could further diminish disposable income or shake public confidence. The message is clear: the Treasury must handle the situation with care to avoid derailing any potential recovery.
This corporate intervention underscores a critical moment for the UK's retail sector and the wider economy. With businesses like Primark serving as a barometer for mainstream spending, their performance is closely watched by policymakers and economists alike.
The profits warning from ABF acts as a stark indicator of the challenges facing the high street. It signals that despite easing inflation, many consumers are still watching every penny, forcing retailers to compete fiercely on price.
All eyes will now be on Westminster to see if the Chancellor heeds this advice from one of Britain's retail powerhouses or opts for a different fiscal path.
