Core Viewpoint - The proposed increase in business rates by the Chancellor is expected to jeopardize approximately 120,000 jobs in the retail and hospitality sectors, as businesses face higher costs and potential closures [1][2][4]. Group 1: Impact on Employment - The British Retail Consortium (BRC) and UK Hospitality estimate that hundreds of sites could close due to the business rate changes, leading to around 120,000 job losses [2]. - Retail and hospitality leaders have expressed concerns that the changes will force large "anchor" stores and entertainment venues to shut down, further impacting employment [4]. Group 2: Business Rate Changes - The proposed overhaul of business rates will increase levies on larger premises to alleviate costs for smaller sites, set to take effect next April [2][3]. - Labour argues that the reform aims to revive city centres by leveling the playing field between high street retailers and online giants [3]. Group 3: Industry Concerns - Retail and hospitality executives have called for exemptions from the higher business rates to protect jobs and anchor stores [4][5]. - Tesco and Sainsbury's have warned that increased business rates could accelerate the decline of high street businesses [5]. Group 4: Consumer Spending and Economic Pressure - Businesses are facing additional pressure as consumer spending declines, with retailers reporting a 27% drop in sales year-on-year as of October [6]. - Consumer confidence remains low, exacerbated by caution ahead of the upcoming Autumn Budget [6]. Group 5: Rising Costs - The planned changes to business rates could lead to increased food prices, which have already risen by nearly 5% over the past year [7]. - Retailers are also dealing with higher costs from previous budget measures, including increased employer National Insurance rates and minimum wage [7].

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].