Screwfix and B&Q owner urges Rachel Reeves to reform business rates if planning tax cuts for US tech giants
THE owner of Screwfix and B&Q has called on the Chancellor to urgently reform business rates if she plans to cut taxes for big US tech companies, including Amazon.
Kingfisher boss Thierry Garnier said web retailers already had unfair advantages.
Rachel Reeves is considering softening the digital services taxes on US technology in an attempt to broker better terms with President Donald Trump on a trade deal.
And Mr Garnier responded: “It puts even more pressure to reform business rates because it is already an unfair competition for bricks and mortar retailers who are paying higher taxes.”
Kingfisher highlighted that it is facing £145million in higher costs this year – with £45million directly down to the government’s changes to national insurance contributions and looming packaging levies.
Kingfisher would also pay a higher rates bill under government plans to increase the levy for more valuable and large properties.
Mr Garnier had backed calls for the Chancellor to stagger in the changes to NICs — to allow companies to be able to budget properly rather than face a sudden wall of costs from the start of April.
However, it is understood the demands have fallen on deaf ears as Ms Reeves grapples with the demands of stretched finances and a need to hike defence spending.
Kingfisher’s shares were knocked hard yesterday by its warnings that profits and cashflow will be lower this year as a result of the uncertain environment.
But the UK is more resilient for the DIY giant than its markets in Poland, Romania and France.
For the past year, Kingfisher posted total revenues of £12.7billion and pre-tax profits of £306 million.
In the UK, Screwfix is powering ahead with plans to open 30 new small City stores within the year, creating 400 jobs.
Its speedy deliveries on Screwfix Sprint have also jumped by 40 per cent.
U.S fizz fever
POSH tonic maker Fever-Tree is fizzing in America — while things are less bubbly in the UK.
The British drinks company yesterday reported its US sales had risen by 9 per cent to £128million, but fell by 3 per cent in the UK to £111million.
The brand recently signed a tie-up with US brewer Molson-Coors in a further bid to boost its expansion in America, where it is more popular for its ginger beer and mixers, including a new Espresso Martini cocktail mix.
The firm recently tied-up with actress Margot Robbie’s Papa Salt gin brand for its first ready-to-drink tinnies, with a “blood orange gin spritz” using soda, rather than tonic.
Beware growing wrong!
THE head of the City watchdog yesterday said that the government’s drive for economic growth has trade-offs with the potential for “one or two more things” to go wrong.
Nikhil Rathi, boss of the Financial Conduct Authority, told MPs yesterday there should be a “good healthy debate” around the benefits and risks of having a strong focus on growth.
The FCA is reviewing mortgage lending and shake-ups to savings accounts to encourage retail investors to take more risk with their savings.
However, Mr Rathi cautioned that it was “not great” how many young people were choosing crypto as an investment because “there’s a very high risk and you could potentially lose all your money”.
A.I means more gas for Shell
SHELL is placing a big bet on gas while trimming spending on renewables — as it bids to boost returns for shareholders.
The FTSE 100-listed energy giant said it was prioritising “higher return opportunities” and plans to ramp up sales of liquefied natural gas (LNG).
It reckons LNG will become even more important as AI data centres around the world suck up huge amounts of power.
Rather than cutting oil production to reduce carbon emissions, it will maintain current levels, while also reducing spending on lower profit, low-carbon businesses.
Boss Wael Sawan is motivated by a desire to boost Shell’s valuation on a par with its US rivals. He said: “We are investing where we have competitive strengths and delivering more for our shareholders.”
Mr Sawan’s annual pay rose by 8.5 per cent last year — up to £8.6million, Shell’s accounts show.
Aldi ups its steak
Aldi is to become Britain’s biggest seller of upmarket Wagyu beef after signing a contract with a Yorkshire farm.
The £320million deal with family-owned Warrendale Wagyu will help the discounter sell 2.5million steaks a year.
Aldi first started selling the steaks — known for their fat marbling — and burgers to appeal to more middle class shoppers. The steaks sell for around £6.99 in Aldi, around £10 cheaper than Waitrose.
Elon overtaken
CHINESE electric car maker BYD’S sales have overtaken Elon Musk’s Tesla for the first time in a milestone moment for the industry.
The rapidly growing Shenzhen-based brand saw sales jump by 29 per cent last year to $107billion (£83 billion), eclipsing Tesla’s $97.7billion (£76.6 billion).
Tesla is suffering slumping sales, particularly in Europe where some drivers are boycotting the brand due to Musk’s involvement with Donald Trump and his support for Germany’s AfD party.
TAXPAYERS now own 4 per cent less in NatWest as the bank edges back to private hands. A large stake was shored up in the 2008 credit crunch.
But it has been rapidly cut from 40 per cent at the end of 2023, aided by NatWest’s improved share price.
Chop at shops
RETAIL sales slumped this month as trade tensions and Budget woes hit business and consumer confidence.
Sales volumes fell the fastest since election jitters last July, stats from the CBI business lobby show. They are at negative 41 per cent for March, down from negative 23 per cent earlier. It marks the sixth month in a row that sales have fallen.
The CBI’s Martin Sartorius said it shows a need for “policies that boost businesses’ confidence to invest” ahead of the Spring Statement.