Business
UK budget shows government doesn’t understand business, says retail veteran
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LONDON (Reuters) – Britain’s tax raising budget shows the government does not understand
LONDON (Reuters) – Britain’s tax raising budget shows the government does not understand business and it will drive prices higher, restrict pay and curtail investment, one of the country’s most experienced retail veterans said on Thursday.
Criticism of finance minister Rachel Reeves’ Oct. 30 budget has been intense, particularly from business after she tapped companies for an additional 25 billion pounds ($32 billion) of taxes a year to rebuild public services. Multiple surveys have shown corporate confidence taking a hit.
Stuart Rose, one of Britain’s best known business figures and the former chairman of retailers Asda, Ocado and Marks & Spencer, added his voice on Thursday, telling LBC radio: “I don’t think government understands business is the real truth.”
He said Reeves had engaged with business prior to July’s national election but was “listening with tin ears”.
“Across the nation now, people will be looking and saying ‘ouch’,” said Rose, who stepped down as Asda chair on Saturday.
As well as predicting price rises and restricted pay increases for workers, he is worried about the impact of the budget on investment.
“People will not invest or they’ll be very circumspect about investing. We must invest, if we don’t invest we don’t grow, if we don’t grow, we die,” he said.
Rose added that while he understood why the government had imposed inheritance tax on agricultural land, to prevent people from buying it to protect their wealth, he joined smaller farmers in warning that it could disrupt the food supply.
“We’re constantly saying ‘oh we must wean ourselves off importing foodstuffs from abroad’ and yet at the same time we’re trying to shoot ourselves in the foot with a policy that may not be very helpful,” he said.
($1 = 0.7903 pounds)
(Reporting by James Davey; Editing by Kate Holton)
Inheritance tax is a tax paid on the estate of a deceased person. It is levied on the value of the estate before it is distributed to heirs.
Business investment refers to the allocation of resources, usually financial, to acquire assets or improve operations with the expectation of generating profit.
The UK economy is the economic system of the United Kingdom, characterized by a mix of private and public enterprise, and is one of the largest economies in the world.
Retail trade involves the sale of goods and services directly to consumers. It is a crucial component of the economy, influencing consumer spending and employment.
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