Primark owner urges Reeves not to squeeze consumers in budget

The boss of Primark's parent group has urged Rachel Reeves to avoid hitting consumers with a repeat of last year's tax-heavy budget, which he claimed sent the retailer's sales into reverse.

- Sarah Butler

As the chancellor prepares to make her budget speech on 26 November, George Weston, the chief executive of Associated British Foods (ABF), said: “A budget this late has the potential to have an enormous impact on Christmas trading.”

Weston said “any tax rises are going to have an impact on consumer confidence”, but urged Reeves to “tax the rich folks” instead of opting for a sweeping rise in VAT or income tax that would affect most households.

Weston said Primark's Christmas ranges were now “trading really well in the UK and we have got some wind in our sails”, but he said that if you considered the outlook for consumer spending “you could be gloomy”.

The chain's sales had reversed from growth before last year's budget to a steep drop-off in the run-up to last Christmas. He said: “I carry scars from [that] budget.”