British businesses build up under pressure on British fins

Home renovation retailer Kingfisher became the latest UK company, reporting a negative impact on British Treasury Secretary Rachel Reeves’ October budget – she prepared the latest news on the state of the UK economy.

In Tuesday’s annual earnings release, Kingfisher, which owns home improvement retailer B&Q, said the government’s policies “raise retailers’ costs and affect consumer sentiment,” and sales of large merchandise fell.

This is the latest in a series of British businesses, criticizing Reeves Bump tax budget Since autumn. Now, the companies will keep a close eye on Reeves’ spring statement, when she will update the latest spending and tax plans for lawmakers on Wednesday at 12:30 p.m.

The highest complaint list for the business complaint list is higher employment costs after the government pledged in October to increase employers’ national insurance contributions and increase the country’s “national living wage” by 6.7%.

Reeves defended taxes ahead of Wednesday’s statement on Sunday and told the Sky News government “take the necessary actions to ensure our public services and public finances.”

However, in the earnings report for the quarter, many consumer-facing businesses raised concerns about the Labor government’s economic policies. They include supermarket giants TescoThis suggests that its higher national insurance contributions could increase annual costs by up to £250 million ($324 million), while the bar chain JD Wetherspoon chairman Tim Martin said the changes would cost £1,500 a week for bars.

Regis Schultz, CEO of sportswear retailer JD Sports, said the policies mean that businesses are tempting businesses to reduce their workforce and time, “this will be bad news for the economy.”

Britain struggles with economic sluggishness, rising prices and general uncertainty due to global trade tariffs by U.S. President Donald Trump.

The Office of Budget Responsibility (OBR) of the country’s independent public finance regulator is It is reported that To lower the UK’s growth forecast for 2025 on Wednesday, in order to halve its top 2% estimate.

AB food, which owns a budget fashion retailer Primark, blames the Labor government’s budget for contributing to a wider consumer weakness in the country. Financial director Eoin Tonge told analysts that its brand’s customers were cautious, citing “shocking and fearful, which drives people to pull the corners.” Apparel retailer Frasers Group shared that view, which said it has weaker consumer confidence in budget announcements. Chris Wootton, the company’s chief financial officer, told Reuters that the company “feels we’ve been kicked.”

A large group of negative comments are expected to put pressure on Reeves ahead of the spring statement.

The UK retail alliance calls on the government to “inject confidence into the economy”, warning that tax contributions increased in April, with a minimum wage that would bring retailers an additional £5 billion in fees, “many of which are besides driving prices up.”

The United Kingdom Industry Federation (CBI) said Reeves “must strengthen business with serious confidence” on Wednesday.

“As a direct priority, the government should recommit to not further increase the commercial tax burden in the course of this parliament,” Louise Hellem, chief economist at CBI, said in a statement. “A ambitious goal for R&D spending, making it easier to invest in skills and take steps to reduce the business burden will encourage action, which will show that the government understands what business needs to see from them.”

Peter Oppenheimer, chief equity strategist at Goldman Sachs, told CNBC on Monday that concerns about consumer and corporate confidence will make Reeves focus on cutting costs rather than raising taxes this week, but said the government’s focus on growth is “a commendable goal, a difficult goal, a difficult thing, a difficult thing.”

CNBC has commented with the UK Treasury Department.

– CNBC’s Holly Ellyatt contributed to the report.