Sainsbury’s boss delivers tax warning to government ahead of Budget

Sainsbury’s chief executive Simon Roberts has urged the Government to avoid further substantial rises in business taxes and labour costs in next week’s Budget, saying it is important not to repeat earlier Labour budgets. He said ministers had listened to business concerns in recent talks, and called for changes to business rates, measures to encourage hiring and greater capacity for investment in farming.

The warning came as Sainsbury’s reported stronger grocery sales and raised its profit outlook, with shoppers buying more as price inflation slowed. For the 28 weeks to 12 September, revenue rose 4.1% to £16.2bn and underlying operating profit increased 3.6% to £525m; the company now expects annual underlying operating profit of £1.025bn to £1.065bn, while its planned Argos sale is progressing.