Tesco chief to UK government: Enough of increasing business costs.

According to The Sun: Tesco Chief Ken Murphy urged Chancellor Rachel Reeves not to increase costs for retailers in the budget, stating that 'enough is enough.'

He advocated for a budget aimed at supporting growth and creating new jobs, which would not make it harder for retailers to keep prices low for consumers.

Reuters

Murphy stressed:

“As a grocery retailer, we operate in a very competitive and challenging environment, and our one request is not to complicate the industry's ability to provide excellent value for consumers.”

 

“In the previous budget, the industry bore significant additional costs. We are doing everything we can to manage them, but enough is enough.”

Tesco reported that it faced additional costs of £235 million due to increased national insurance contributions, as well as £90 million due to new packaging taxes.

Despite this, the supermarket still expects its adjusted operating profits for the year to be between £2.9 and £3.1 billion.

Tesco has reduced prices on about 6,500 items compared to last year, with an average reduction of around nine percent. Ken Murphy noted that shoppers have started adding more items to their baskets because of this.

He also noted that Tesco is 'betting on a successful Christmas', as it expects customers to approach the festive season in an 'affordable and manageable way'.

THAMES WATER HOPE

Thames Water's creditors have proposed a new rescue plan for the company to prevent its collapse.

The consortium London & Valley Water plans to write off a third of its £20 billion debt and invest £5.4 billion to stabilize the company's finances.

Investors state that this plan will allow the company to recover without taxpayer support or government intervention.

Thames, the largest water utilities company in the UK, has recently faced harsh criticism for discharging sewage.

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The situation with Tesco reflects the complexity of doing business in today's economic environment, where additional costs can become a serious barrier for retailers. On the other hand, the initiative from Thames Water's creditors demonstrates the sector's commitment to tackle challenges without government intervention. These events indicate ongoing changes in the market and the efforts of companies to find optimal solutions to stabilize their finances.