Supermarkets tell Reeves tax rises could push food prices higher

UK supermarket executives have warned Chancellor Rachel Reeves that proposed tax increases could lead to higher food prices for consumers. In a joint letter to Reeves ahead of the November 26 budget, leaders from major supermarkets including Tesco and Sainsbury’s stated that any new taxes would challenge their ability to offer value to customers. They argue this comes on top of existing pressures like high inflation and recent tax changes, which have already increased costs for businesses. The British Retail Consortium (BRC) expressed concern over potential inclusion in the government's additional surtax for properties valued above £500,000, suggesting such a move could exacerbate food inflation. Official data shows UK inflation at 3.8%, with annual food price inflation easing slightly to 4.5% in September from 5.1% in August.

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