John Lewis half-year losses blamed on tax

AN INCREASE in national insurance contributions and a packaging levy has “significantly” affected John Lewis, with the retailer posting a half-year loss despite revenue growth.

- AMBER MURRAY

The company, which also operates Waitrose, recorded a pretax loss of £33m before exceptional items for the 26 weeks ending July 26. It has been “significantly impacted by costs not present in the equivalent prior period” the firm stated, including £29m in expenses for the new Extended Producer Responsibility (EPR) packaging levy and elevated National Insurance Contributions (NICs).

Retailers nationwide have been outspoken regarding the harm inflicted by the increased taxes unveiled in the previous autumn Budget, which have resulted in reduced recruitment across the sector.