Asda’s chairman Allan Leighton has delivered a sharp warning to Chancellor Rachel Reeves, accusing her of “taxing everything” and urging the government to focus instead on investment to drive growth.
Speaking as speculation grows that Reeves will need to raise an additional £50 billion in her Autumn Budget to balance the books, Leighton said the government’s fiscal approach was already hitting retailers, pushing up inflation and leaving consumers worse off.
“There’s no doubt all of this is hitting the pocket of the consumer,” he told reporters. “And when that happens, that’s not particularly good for anybody. I think there’s more gloom than we’ve seen for a long time.
The comments come as retailers continue to grapple with rising costs following last year’s £40 billion package of tax rises. According to the British Retail Consortium, annual costs for the sector have jumped by £7 billion, driven by increases in employer national insurance contributions, higher minimum wages and new packaging taxes.
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