Tesco chief urges Healey to overhaul business rates and scrap warehouse tax

Tesco's chief executive Ken Murphy urged Chancellor John Healey to revise the business rates regime, describing it as fundamentally unfair and demanding an exemption for all retail businesses from the half-million pound rateable-value cutoff. He warned that a proposed increase in the rates multiplier for warehouses would likely raise grocery prices, undermining consumer resilience. The British Retail Consortium supported the call, pointing out that retailers pay 72p of tax for every pound earned, the second-highest rate after hospitality.

Murphy noted Tesco's upgraded profit outlook after strong online sales, despite a slight dip in comparable store growth. He also dismissed a Food and Drink Federation forecast of 10% food inflation, saying inflation has stayed well below wage growth. Finally, Murphy said Tesco will continue to reject unjustified supplier price hikes, as the Grocery Code Adjudicator prepares to meet with supermarkets.