Currys CEO Urges Government to Avoid Retail Tax Increases Amid Profit Surge

In a significant appeal to the UK government, Alex Baldock, the Chief Executive Officer of Currys, the nation's largest electrical goods retailer, has urged against any increase in taxes imposed on retailers. Baldock's statement comes in light of the company's recent financial report, which revealed a remarkable 37% rise in pre-tax profits, reaching £162 million for the fiscal year ending May 3, 2025. The call for restraint in tax policy is framed within the context of rising inflation and ongoing economic challenges that retailers face.

Baldock stated, "We urge the government not to make a further contribution to the tax burden as that would further dampen investment and increase prices in an inflationary way. I would urge the government to think very carefully before making the situation worse." He highlighted the precarious position of retailers, who are already grappling with increased national insurance contributions and the recent rise in the national living wage, which has further strained hiring capabilities.

This sentiment echoes a similar warning issued by Simon Roberts, the CEO of Sainsbury’s, who cautioned the government to be mindful of the detrimental impacts higher taxes could impose on employment and job security within the retail sector. Both executives have raised alarm over the negative repercussions that fiscal policies could have on consumer prices and economic stability.

The upcoming autumn budget, led by Chancellor Rachel Reeves, is anticipated to include measures aimed at raising fresh funds to address public service needs and stimulate economic growth. However, as the government grapples with the fallout from recent welfare cuts, the urgency of maintaining a balanced tax approach has never been more critical. Keir Starmer, the leader of the Labour Party, has publicly supported Reeves, lending political weight to the fiscal discussions.

Despite the broader economic challenges, Currys has reported a 3% increase in group sales, totaling £8.7 billion, with a notable 6% boost in sales from established UK stores. This increase has been attributed to rising demand for technology, particularly AI-enabled gadgets, alongside a resurgence in laptop sales as consumers replace outdated devices acquired during the pandemic.

However, Baldock expressed concerns regarding the stagnant growth of the wider electrical goods market and the potential effects of cheap electrical goods being flooded onto online marketplaces. He specifically noted that while this issue does not directly impact Currys, it does pose a risk to the integrity of the market.

In response to these challenges, Baldock welcomed the government’s commitment to reassess the de minimis rules regarding import duties on low-value goods, emphasizing the need for urgent changes to support UK retailers. The current threshold for import duty is set at £135, while items valued at £39 or less are exempt from import VAT, a policy that has significant implications for consumer electronics.

As the landscape of retail continues to shift, the call to action from Baldock and his peers highlights the delicate balance the government must navigate between raising revenue and fostering an environment conducive to robust retail growth. The implications of forthcoming tax policies will be pivotal in shaping the future trajectory of the retail sector in the UK, affecting everything from consumer prices to employment rates.

Moving forward, the retail industry faces a critical juncture where collaboration between government and business leadership will be essential in ensuring sustainable growth and adaptation to an evolving economic landscape.