Rachel Reeves, Treasury Adviser in the United Kingdom, outside the 11 Downing Street before submitting its budget to Parliament in London, UK, on Wednesday, October 30, 2024.
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Kingfisher in the field of home improvement has become the latest British company to report a negative impact from the budget of UK Finance Rachel Reeves in October – where it is its last update on the state of the British economy.
In issuing its annual profits on Tuesday, Kingfisher, who owns the retail seller to improve the B&S homes, said that government policies “sparked the costs of retailers and morale were affected”, with a decrease in sales of large materials.
This is the latest in a group of British companies that criticized Reeves Budget budget bumper Since the fall. Companies will now monitor the Rabez Spring statement, when the legislators are scheduled to update the latest spending and tax plans at 12:30 pm London time on Wednesday.
Top in the list of complaints to companies is the cost of a higher employment after the government pledged in October to increase national insurance contributions from employers and raised the “national living wages” in the country by 6.7 % from April 1.
On Sunday, Reeves defended the increase in taxes before a statement on Wednesday, and told Sky News that the government “took the measures that were necessary to ensure that our public services and public financing were in full swing.”
However, a number of companies facing the consumer have put a sign of concerns about the economic policies of the labor government in their profits. It includes the supermarket giant TescoWhich said that the supreme national insurance contributions may add up to 250 million pounds (324 million dollars) to the annual costs, while the head of the JD Wetherrspoon series, Tim Martin, will cost each of his bars 1500 pounds per week.
Reges Schultz, CEO of JD SPORTS retail stores, said that policies mean that it is tempting to companies to reduce the number of employees and watches, “which will be bad news for the economy.”
This comes at a time when the UK is fighting economic watermelon, high prices and a large -scale certainty as a result of US President Donald Trump's definitions.
Budget Responsibility Office (OBR), which is an independent public finance in the country, And according to what was expected To reduce the growth forecast in the UK 2025 on Wednesday, and half of its previous estimate by 2 %.
AB Foods, who has a budget retail seller, blames the budget of the work government for contributing to the weak consumer in the country. Financial Director Iyen Tong told analysts that the customers through their commercial signs were cautious, noting “shock and fear, and this causes people to attract their centuries.” This opinion was shared by Frasers Group, which it said has witnessed weaker confidence in the consumer about the budget advertisement. Chris Watton, the company's financial manager, told Reuters that the company “felt that we had been kicked in the face.”
A large number of negative companies' comments are expected to accumulate on Reeves before the spring statement.
The British retail union called on the government to “pump confidence in the economy”, warning that the rise of April in tax contributions and that the minimum wage will generate 5 billion pounds as an additional costs for retailers, which gives “many options other than raising prices.”
The British Confederation of Industry (CBI) said Reeves “should pump business with serious confidence” on Wednesday.
“As an immediate priority, the government must re -meet the failure to raise the business tax over the course of this parliament,” Louise Hell, chief economist at the Central Bank of Iraq, said in a statement. “Determining an ambitious goal to spend on research and development, which facilitates investment in skills and conducting measures to reduce the regulatory burden on businesses will be to encourage the moves that will show the government to understand what you need to work from.”
Meanwhile, Peter Openheimer, the chief stock strategy in Goldman Sachs, told CNBC on Monday that concerns about consumer and business confidence will witness that Reeves focus on reducing costs instead of raising taxes this week, but he said that the government's focus on growing growth was “a worthy goal, which is difficult to do.”
CNBC has arrived at the UK Treasury for comment.
– Holly Eliaat VIPC contributed to this report.
