Thierry Garnier, chief executive of FTSE 100 firm Kingfisher, has cautioned Chancellor John Healey that the retail group may be forced to cease its support for unemployed young people if taxes are raised. Mr Garnier, whose company owns B&Q and Screwfix, wrote in City AM that shops should be exempt from the highest bracket of business rates in the Budget later this month.
Mr Garnier stated that retailers, who are significant employers of young people, want to address the issue of young people not in employment, education or training (NEETs). However, he indicated that this would not be possible if their costs continue to increase. Kingfisher has committed to offering work experience placements at B&Q and Screwfix to help tackle this issue.
Retail bosses are increasing pressure on Mr Healey to reduce industry taxes. The British Retail Consortium, representing major retailers, has called for the Chancellor to reverse some of the increases to employer national insurance contributions implemented by his predecessor. Mr Garnier highlighted tackling business rates as the "single biggest opportunity for the Chancellor to help retailers keep investing" in the UK.
Retailers argue that business rates are an outdated tax that disadvantages high street firms compared to online sellers. They have urged the Labour government to adhere to its election manifesto pledge to "replace" the tax system. On Tuesday, the BRC, along with retailers including Sainsbury's and Tesco, met with the Chancellor to present their demands ahead of the Budget, which included business rates reform and action on NEETs.