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Rachel Reeves, Chancellor of the United Kingdom of the Hacienda, outside 11 Downing Street before presenting its budget to Parliament in London, the United Kingdom, on Wednesday, October 30, 2024.
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The Retaire of Household Improvements Kingfisher became the last British company in informing a negative impact of the United Kingdom finance minister, Rachel Reeves, the October budget, while preparing her last update on the state of the British economy.
In its annual profit launch on Tuesday, Kingfisher, who has the home improvements retailers, B&C, said the government’s policies had “raised costs for retailers and impacted the feeling of the consumer”, with sales of large ticket items.
It is the last of a British business line that have criticized Reeves’ Tax rise budget From autumn. Companies will now closely monitor the Reeves Spring Declaration, when you are scheduled to update legislators about their latest expenses and tax plans at 12:30 PM, London time, Wednesday.
The list of company complaints is a higher employment cost after the Government promised in October to increase the contributions of the National Employers Insurance and increase the “national salary” of the country by 6.7% as of April 1.
On Sunday, Reeves defended tax increases before Wednesday’s statement, and told Sky News that the government “took the necessary measures to ensure that our public services and public finances were standing.”
However, a series of consumer -oriented companies have marked concerns with the economic government policies in their profit reports. They include the supermarket giant TescoThat he said that his higher national insurance contributions could add £ 250 million ($ 324 million) to the annual costs, while the president of the JD Wetherspoon Pub chain, Tim Martin, said that the changes will cost each of its pubs £ 1,500 per week.
Regis Schultz, CEO of the Sportswear JD Sports retailer, said policies mean it was tempting for companies to reduce the number of personnel and hours, “that will be bad news for the economy.”
It occurs when the United Kingdom fights economic slowness, the increase in prices and generalized uncertainty as a result of the world commercial rates of US President Donald Trump.
The Office of Budget Responsibility (OBR), the Guardian Dog of Independent Finance of the country, is As reported, expected To degrade the United Kingdom growth forecasts by 2025 on Wednesday, in half its previous estimate of 2%.
AB Foods, who has the budget fashion retailer, Primark, blamed the Labor Government Budget for contributing to a broader weakness of the consumer in the country. The director of Finance, Eoin Tonge, told analysts that the clients of their brands were cautious, citing “a shock and fear, that leads people to attract their horns.” That opinion was shared by Clothing Retail Group, who said he saw a weaker consumer confidence around the budget announcement. The company’s financial director, Chris Wootton, told Reuters that the company “felt that they had put us on the face.”
The series of negative corporate comments is expected to accumulate pressure on REEves before their spring statement.
The British retail consortium has asked the Government to “inject confidence in the economy”, warning that the increase in April in tax contributions and the minimum wage will generate £ 5 billion in additional costs for retailers, giving “many options that there is nothing more than raising prices.”
The Confederation of the British industry (CBI) said that Reeves “must inject businesses with a serious impulse of trust” Wednesday.
“As an immediate priority, the government should commit to not increase the commercial tax burden even more in the course of this Parliament,” said Louise Hellem, the main economist of the CBI, in a statement. “Establishing an ambitious objective for R&D spending, which facilitates investing in skills and taking measures to reduce the regulatory burden of business would be to encourage the movements that would show that the government understood what businesses should see of them.”
Meanwhile, Goldman Sachs’s variable rental strategist, Peter Oppenheimer, told CNBC on Monday that concerns about consumers’ confidence and business will make the Reeves focus on reducing costs instead of increasing taxes this week, but said that the government’s approach in increasing growth was “a laudable objective, something difficult to do.”
CNBC has communicated with the United Kingdom’s treasure to comment.
– Holly Ellyatt of CNBC contributed to this report.
