Reeves' tax hikes will cost car dealer an extra £30m a year

ARNOLD Clark, the car dealership behemoth, has disclosed the tax increases announced by Rachel Reeves in her inaugural Budget as Chancellor are set to cost the company an additional £30m annually.

- JON ROBINSON

The Glasgow-based firm pinpointed the hike in employer's National Insurance contributions and the increase in National Minimum Wage as the primary drivers behind the cost surge.

Arnold Clark expressed concerns that the tax hikes “are likely to have significant impacts on the group and the wider automotive market”.

This information was included in the latest financial statements for the group, which were recently submitted to Companies House. The accounts show that Arnold Clark's revenue climbed from £4.9bn to £5.1bn in 2024, while its pre-tax profit ascended from £116m to £120.7m.