Primark's owner could shift investment away from the UK in response to higher taxes on businesses, its boss has signalled.
George Weston, chief executive of Primark owner Associated British Foods PLC (LSE:ABF) (ABF), said Tuesday that the company was facing a surge in costs after last month’s Budget.
“It's quite clear to me that this is a Budget where the weight of the tax rises are falling on business [...] particularly on the high street,” he told the PA news agency.
“We’re an international business as well, we have choices about where we will invest.”
Chancellor Rachel Reeves hiked employer national insurance contributions to 15% on salaries above £5,000 in the Budget, from 13.8% on those higher than £9,100 previously.
Weston said this was set to increase ABF’s national insurance bill by “tens of millions”.
“We undoubtedly have significant increases in costs that we are facing,” he added.
ABF reported a 43% spike in pre-tax profit to £1.92 billion for the year earlier on Tuesday, as revenue climbed 2% to £20.01 billion.
Sales at Primark were said to have climbed by 6%, with ABF also recording growth across “key” markets in the US, France, Spain, Italy and Central and Eastern Europe.