The CEO of Kingfisher, Thierry Garnier, has appealed to Rachel Reeves to reconsider the proposed tax increases for retailers before the upcoming spring statement, emphasizing that the retail industry is just as innovative in AI and robotics as US tech companies, which might be eligible for tax cuts. Kingfisher, the parent company of BQ and Screwfix, is voicing concerns on the eve of Reeves’ statement to Parliament, advocating for a reform of the business rates system. Garnier points out that increases in employers’ national insurance contributions and packaging taxes could raise Kingfisher’s costs in the UK by £45 million this year, with a further rise expected when the minimum wage increases next month. Kingfisher anticipates paying more in business rates from April 2026, as the government plans to increase the property tax for larger retail outlets. Garnier argues that retailers are tech companies themselves, investing in AI and innovation, and need more support to continue innovating and hiring. Meanwhile, Keir Starmer has been cautioned against cutting taxes for US tech companies as a potential policy to appease Donald Trump. There are ongoing discussions about the UK’s £1bn-a-year digital services tax affecting companies like Meta and Amazon. Kingfisher has seen a 12% drop in its stock price after announcing a potential decline in profits and a 7% annual revenue drop to £12.8 billion, hit by a decline in France where the company operates Castorama and Brico Dépôt. Despite these challenges, Garnier remains optimistic about consumer resilience in repairing and renovating their homes. The company plans to offset higher tax costs by optimizing its distribution centers and expanding its presence with more Screwfix and B&M stores.

Source: https://www.theguardian.com/business/2025/mar/25/b-and-q-owner-kingfisher-reeves-uk-tax-rises-retailers-ni