Proactive Investors - Lidl’s UK chief executive has joined the sector's criticism of the Budget, saying retailers are “reeling” from the cost of the tax hikes announced by Chancellor Rachel Reeves.
Ryan McDonnell said his business faces “tens of millions of pounds” in extra costs including the additions to the minimum wage.
McDonnell told PA: “There is a lot of impact that we will have to negotiate and I think the letter shows that the industry is reeling a lot.
“We are talking about £7 billion for the whole industry. For us it will be somewhere in the tens of millions.”
That will mean more inflation, he added, though Lidl would remain a value supermarket.
Tesco (LON:TSCO), Sainsbury 's (LON:SBRY) and M&S have all warned about the cost burden they face from the Budget, while yesterday 79 signatories from the retail sector sent a letter to Reeves saying the changes would mean job losses, shop closures, and price hikes.
McDonnell was speaking after Lidl GB bounced back into profit for the year to February as revenues increased by 16.9% to £10.9 billion.
Profits were £43.6 million for the year against a loss of £76 million a year earlier.
Lidl GB now has almost 1,000 stores in the UK with 18 planned for the rest of 2024 and 40 more openings in the next financial year.
McDonnell said: “60% of households are choosing to shop at Lidl, and they’re coming back more frequently, which is a fantastic sign of increasing loyalty.
“Our ambitions have no ceiling,” he added.