Hikes in taxes should be avoided, urges Currys boss: Alex Baldock issues warning to the Chancellor about potential job losses and price increases as a result of further tax increases.
In a stark warning to the government, Alex Baldock, CEO of electronics retail giant Currys, has expressed concerns that further tax hikes could negatively impact retail growth and potentially lead to job losses within the sector.
Baldock criticised certain government policies, particularly those associated with the Labour party, for making it "harder, riskier, and more expensive to hire people," which he believes would directly affect employment within the retail sector [1]. He highlighted that Currys has already faced a 13% increase in employment costs overnight due to National Insurance rises, alongside higher property taxes and the burden of new employment law changes, which he described as "counter-productive red tape" [1].
The CEO's concerns are shared by economists, who have predicted significant tax rises due to current policies not being sustainable [2]. Bruna Skarica, chief UK economist at Morgan Stanley, stated that without tax hikes or alternative spending cuts, fiscal rules would be broken in the autumn [3]. Economist Ben Caswell echoed these sentiments, stating that the inevitability of tax rises due to Keir Starmer's welfare bill humiliation could have a detrimental effect on the economy [4].
Baldock's position is that higher taxes on retailers this year would further constrain the sector, which is already grappling with increased costs [2]. He urged the government to reconsider proposed tax and employment law increases that could lead to less employment and potentially more redundancies [1].
Despite these challenges, Currys reported annual profits of £162million, a 37% increase from the previous year [5]. The company's revenue for the 12 months to May 3 rose 3% to £8.7billion [6]. Currys' net cash of £184million marks the strongest balance sheet in a decade [7].
The retailer has also seen growth in specific areas. Health and beauty products are growing fast for Currys, while UK sales were driven by demand for mobile phone and computing businesses [8]. The recent heatwave boosted sales of fans, air conditioning units, and barbecues for Currys [9].
Despite the challenges, Baldock expressed a desire for Currys to help grow the economy and bring investment into the UK [10]. He insisted that the company could "swim against the tide" and contribute more to the economy with a more favorable policy environment [11]. However, he urged the government to "think very carefully" before making decisions that could make the situation worse [12].
With firms worried about further tax rises, making them reluctant to invest and hire, the retail sector faces an uncertain future. Baldock's warning serves as a reminder of the potential consequences of such decisions on jobs and the overall health of the retail sector.
- Alex Baldock, the CEO of Currys, expressed concerns that further tax hikes could restrict investment and hiring within the retail sector, potentially leading to job losses.
- Economists predict significant tax rises due to unsustainable current policies, which Baldock believes would further constrain the retail sector already dealing with increased costs.
- Asking the government to reconsider proposed tax and employment law increases, Baldock wants a more favorable policy environment for his company, Currys, to help grow the economy and bring more investment into the UK.
