Next warns of 'anaemic' growth as higher taxes hit productivity

Bosses at the clothing and homeware chain Next are forecasting years of “anaemic” growth across the UK, with the retailer claiming that regulation, government spending and higher taxes will hurt jobs and productivity.

- Joanna Partridge Kalyeena Makortoff

The FTSE 100 company, which is headed by the Conservative peer Simon Wolfson, said that while it did not believe the economy was heading towards a “cliff edge”, the weakening outlook gave the company “another reason to be cautious”.

“The mediumto long-term outlook for the UK economy does not look favourable,” the retailer said as it released its results for the six months to July.

The company, which sells its own-brand clothes and homeware alongside other brands’ products and controls the UK distribution of the US brands Gap and Victoria’s Secret, said the rising tax burden and government spending commitments were putting pressure on businesses.