Next warns of UK growth slowing after tax rises

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Brick-and-mortar retailer Next has warned that its pace of growth in the UK will slow this year as the impact of tax rises introduced in the Budget begins to ripple through the wider economy.

The industry leader expects annual pre-tax profits to rise by £5m to just over £1bn for the year to January, following strong full-price sales over the festive period.

But it also said that “employer tax increases and their potential impact on prices and employment” would begin to impact UK sales growth, citing Chancellor Rachel Reeves’ changes to national insurance contributions.

Full-price UK sales growth is expected to be 1.4 per cent in the next financial year, up from 2.5 per cent in the 12 months to December 28.

However, that is Retailer Profit growth of 3.6 percent is still forecast for the full year up to January 2026.

This is a developing story

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