- Asda's chairman, Allan Leighton, has urged Chancellor Rachel Reeves to avoid new tax raids in the upcoming budget, advocating for investment to grow the economy instead.
- Ms Reeves is reportedly considering various measures to address a £50bn public finance deficit, including a 'mansion tax', extending the income tax threshold freeze, and increasing business rates.
- Mr Leighton said that these proposed tax changes are “very unhelpful” and contribute to inflation, directly impacting consumer spending.
- The warnings coincide with new figures revealing that food inflation reached 4.2 per cent in August, the highest level since February 2024, intensifying pressure on households struggling with the cost of living.
- More than 60 retail bosses have collectively cautioned Ms Reeves that further tax increases could undermine her objectives to improve UK living standards.
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