Key facts
- Kingfisher warned it may pull support for Neet programs if UK taxes rise.
- The company faces potential increases in employers' national insurance and packaging taxes.
- Kingfisher expects its UK costs to rise by £45m this year due to tax changes.
- Business rates for larger retail outlets are set to increase from April 2026.
- Kingfisher's profits could fall in the year ahead, with shares down over 14%.
Kingfisher, the owner of B&Q, has warned UK Chancellor John Healey that the company may withdraw its support for programs assisting young people not in education, employment, or training (Neets) if taxes are increased. The company's chief executive, Thierry Garnier, stated that potential hikes in employers' national insurance contributions and packaging taxes would raise its UK costs by £45 million this year.
Retail bosses are preparing to warn Chancellor Healey that a tax increase on shops could lead to higher prices and exacerbate the cost of living crisis. Garnier urged Reeves to reform the business rates system, noting that Kingfisher expects to pay more on business rates from April 2026 when property taxes for larger retail outlets are planned to increase. These changes, initially aimed at online retailers, could also affect large physical stores.
Garnier argued that retailers are investing in AI and innovation and require more support, contrasting this with potential tax cuts for US tech companies. Kingfisher's shares fell over 14% on Tuesday amid concerns about future profits, which are expected to be about 6% below City expectations. The company reported a 1.5% slide in sales to £12.8 billion year on year, with performance in France significantly impacting overall results.