Nish Kankiwala, chief executive of the John Lewis Partnership, has accused Chancellor Rachel Reeves of implementing a “two-handed” tax grab on retailers, joining a growing backlash against the recent Budget.
Kankiwala stated that John Lewis faces increased employment costs and higher business rates following the Budget, which could hinder the retailer’s turnaround efforts. “That seems to be sort of [a] two-handed grab, and that’s unhelpful,” he told the Financial Times.
The partnership, which operates John Lewis department stores and Waitrose supermarkets, anticipates spending tens of millions of pounds extra on staff costs after the Chancellor announced an increase in the employers’ National Insurance rate. In the Budget, Ms. Reeves stated that employers’ National Insurance contributions would rise from 13.8% to 15% in April, while also lowering the threshold at which contributions are paid.
Additionally, the Treasury has delayed a planned overhaul of the business rates system until 2026, despite previous pledges to reform how companies are taxed on their properties to support retailers. This delay means that many retailers, including John Lewis, will face higher business rates bills for at least another year.
Kankiwala commented: “If they could delay the National Insurance [changes], but also if they could fundamentally bring forward a radical reshaping of business rates, I think it will make a massive difference—not just for small and medium enterprises, but I think for retail generally. It’s very important.”
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