Next boss warns Chancellor against tax rises before 28 October Budget
Next boss Lord Simon Wolfson urged Chancellor John Healey to rule out further tax increases ahead of the 28 October Budget, warning that such rises would add pressure to consumer spending and could dampen economic growth. He said the government should instead concentrate on controlling public spending and introducing supply‑side reforms aimed at boosting long‑term growth.
Next cut its forecast for UK sales growth in the second half of the financial year from 2.8% to 2%, citing higher inflation, rising mortgage costs and a softer labour market. In the first half, underlying pre‑tax profit increased 10.5% to £569m and full‑price sales rose 7.7%. The retailer raised its full‑year pre‑tax profit outlook by £12m to £1.255bn and noted a 3.6% increase in UK full‑price sales, driven by a 7.4% rise online that outweighed a 1.7% decline in stores. International online sales surged 23.9%, helping to offset weaker domestic performance. Next said stronger international trade is expected to cushion the impact of slower UK growth later in the year. The firm also said it would continue to monitor inflation and mortgage costs as they affect UK consumer spending.
“These worries will only be compounded if they are accompanied by tax increases,” Lord Simon Wolfson, chief executive of Next said.
Even though Wolfson warned about the UK consumer outlook, Next reported a strong first‑half result and lifted its full‑year profit forecast for the fourth time in 2026. UK full‑price sales grew 3.6%, with online sales up 7.4% offsetting a 1.7% drop in store‑based sales.
What we know
Next lowered its forecast for UK sales growth in the second half of its financial year from 2.8 per cent to two per cent, citing rising inflation, higher mortgage costs and a weaker employment market.
Underlying pre-tax profit climbed 10.5 per cent to £569m during the period, while full-price sales increased 7.7 per cent.
The fashion giant lifted its full-year pre-tax profit forecast by £12m to £1.255bn.
The chief executive called on the government to instead focus on controlling spending and introducing measures designed to boost economic growth ahead of Healey’s first Budget on 28 October.
International online sales jumped 23.9 per cent.