Tesco boss tells Reeves: ‘Enough is enough’ on tax rises

Core Viewpoint - Tesco's CEO Ken Murphy emphasizes the need for a "pro-growth and pro-jobs" Budget, urging the Chancellor to avoid further tax increases that could hinder supermarkets' ability to manage prices and support customers amid rising living costs [1][2][3]. Financial Impact - Tesco has faced a £235 million impact from increased National Insurance contributions and an additional £90 million from a new packaging levy [2]. - The company has raised its profit forecast for the year to between £2.9 billion and £3.1 billion, up from a previous estimate of £2.7 billion to £3 billion [5]. Market Position and Strategy - Tesco has successfully attracted more customers by implementing price cuts on 6,500 products, averaging a reduction of around 9%, and matching prices on over 600 items with Aldi [6]. - The grocery market share for Tesco has increased to 28.4%, with sales rising by 4.3% in the first half of the year, despite a 9.6% decline in profits to £950 million during the same period [7]. Competitive Environment - The retail environment is described as highly competitive, with Tesco responding to a price war initiated by rival Asda [6][3]. - Murphy warns that further tax increases and business rate reforms could exacerbate operational costs for large supermarkets, potentially impacting their ability to provide value to customers [4].