Primark owner’s boss urges Reeves not to hit shoppers with budget tax rises
The boss of Primark’s parent group has urged Rachel Reeves to avoid hitting consumers with a repeat of last year’s tax-heavy budget which he claimed sent the retailer’s sales into reverse, saying “don’t do it again”.As the chancellor prepares to make her budget speech on 26 November, George Weston, the chief executive of Associated British Foods (ABF), said: “A budget this late has the potential to have an enormous impact on Christmas trading.”Weston said “any tax rises are going to have an impact on consumer confidence,” but urged Reeves to “tax the rich folks” instead of opting for a sweeping rise in VAT or income tax that would affect most households.Weston said Primark’s Christmas ranges were now “trading really well in the UK and we have got some wind in our sails” but he said that if you considered the outlook for consumer spending “you could be gloomy”.He said that the chain’s sales reversed from growth before last year’s budget, to a steep drop-off in the run-up to Christmas.
He added: “I carry scars from [that] budget.”Weston’s comments emerged as ABF said it is considering splitting the fashion retailer from its food division, which contains brands including Twinings and Kingsmill, amid a “challenging external backdrop”.It is considering splitting off Primark from its food arm, which includes sugar production and grocery brands, “with a view to maximising long-term value”.The group has launched a strategic review, carried out with the help of the advisory firm Rothschild & Co, with the backing of its largest shareholder, the Weston family’s Wittington Investments.The company said the family, which owns 59% of ABF, remained “committed to maintaining majority ownership of both businesses”.
The family sat in sixth position on the 2025 Sunday Times Rich List, with its wealth valued at nearly £18bn.ABF, which is valued at £16bn as a group, said no decision had been taken and the board would provide an update “as soon as practicable”.Analysts at Panmure Liberum suggested that a separated Primark could be worth more than £15.5bn and the food businesses more than £3bn.Weston said he fully backed the review, adding that ABF’s food business was “less well understood” than Primark but had “a highly attractive portfolio, deep global expertise and much potential”.
Earlier this year, the Primark chief executive, Paul Marchant, resigned after an allegation made by a woman about his behaviour towards her in a social situation.The group also announced a fall in sales and profits on Tuesday as its sugar and agriculture businesses faced higher costs and it closed its Vivergo bioethanol plant.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionABF said pre-tax profits had slumped by more than a quarter to £1.4bn as revenues slipped by 3% to £19.4bn in the year to 13 September.
Its sugar business fell £205m into the red as its revenues slid 12% to £2bn after the decision to close Vivergo as well as higher costs and lower prices for its sugar.Sales at Primark rose 1% to £9.5bn.A 3% fall in sales at established UK and Irish stores was offset by 20% growth in the US and 2% growth in mainland Europe, where Primark is opening new stores.It added that shopping activity within elements of Primark’s customer base was particularly weak as the spending power of those on low incomes was hit by higher energy and food bills.
Primark has more than 470 stores across 18 countries, including 187 shops in the UK,ABF closed Vivergo after the UK government signed a duty-free deal on the product with the US,It is also finalising the merger of its bakeries business, which includes the Kingsmill brand, with its rival Hovis,
Pound hits lowest since April as investors anticipate budget tax rises; markets hit by AI valuation jitters – as it happened
The pound has now dropped to $1.3064, a new six-month low, as City traders anticipate tax rises in this month’s budget.Sterling has lost more than 0.5% today, or around three-quarters of a cent, with analysts pointing to Rachel Reeves’s promise of an “iron clad” commitment to her fiscal rules, and her failure to rule out tax rises.Fiona Cincotta, senior market analyst at City Index, says:In a rare pre-budget speech, Reeves reiterated her commitment to budget goals and what many are considering as weaves, paving the way for more tax hikes and tough decisions in the Budget that would come close to breaking the party’s manifesto pledges
Gopichand Hinduja, head of Britain’s richest family, dies aged 85
Gopichand Hinduja, the billionaire head of Britain’s richest family, has died aged 85.Hinduja died on Tuesday in London after a long illness, a spokesperson said.The low-profile Hinduja family topped the Sunday Times Rich List this year with a collective net worth of £35.3bn, thanks to their sprawling business interests across banking, oil, real estate and entertainment.Gopichand Hinduja, nicknamed “GP”, co-chaired the family business with his older brother Srichand, who died in 2023
Apple Watch SE 3 review: the bargain smartwatch for iPhone
Apple’s entry level Watch SE has been updated with almost everything from its excellent mid-range Series 11 but costs about 40% less, making it the bargain of iPhone smartwatches.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.The new Watch SE 3 costs from £219 (€269/$249/A$399), making it one of the cheapest brand-new fully fledged smartwatches available for the iPhone and undercutting the £369 Series 11 and the top-of-the-line £749 Apple Watch Ultra 3
Experts find flaws in hundreds of tests that check AI safety and effectiveness
Experts have found weaknesses, some serious, in hundreds of tests used to check the safety and effectiveness of new artificial intelligence models being released into the world.Computer scientists from the British government’s AI Security Institute, and experts at universities including Stanford, Berkeley and Oxford, examined more than 440 benchmarks that provide an important safety net.They found flaws that “undermine the validity of the resulting claims”, that “almost all … have weaknesses in at least one area”, and resulting scores might be “irrelevant or even misleading”.Many of the benchmarks are used to evaluate the latest AI models released by the big technology companies, said the study’s lead author, Andrew Bean, a researcher at the Oxford Internet Institute.In the absence of nationwide AI regulation in the UK and US, benchmarks are used to check if new AIs are safe, align to human interests and achieve their claimed capabilities in reasoning, maths and coding
LIV Golf backtracks from short format to 72-hole tournaments after pressure from players
LIV Golf has surprisingly backtracked on one of its founding principles by announcing tournaments in the fourth season of the Saudi Arabian-backed league will be played over 72 holes. Until now, LIV has proudly operated over 54 holes and three days, with the name itself partly based on a Roman numeral reference point. Could a rebrand to LXXII be imminent?The dramatic shift, which is believed to have come after pressure from players, means LIV will soon mirror the schedule traditional golf tours it once tried to upstage. LIV will, however, continue to run both individual and team competition elements.“The most successful leagues around the world – IPL, EPL [English Premier League], NBA, MLB, NFL – continue to innovate and evolve their product,” said Scott O’Neil, LIV’s chief executive
Roebuck and Steward injuries likely to trigger major England reshuffle against Fiji
Injuries to Tom Roebuck and Freddie Steward look likely to trigger an eye-catching reshuffle in England’s backline for the Test against Fiji on Saturday. Marcus Smith, Henry Arundell and Ollie Lawrence are all in contention to be involved, with Manny Feyi-Waboso potentially the solitary starting back-three survivor from the victory against Australia last Saturday.The head coach, Steve Borthwick, had been hoping to announce his starting XV early this week only for that plan to be mothballed when Roebuck limped out of training prematurely on Tuesday with an ankle problem. Steward has not trained so far this week after sustaining a finger injury late in the win against the Wallabies, opening the way for Smith to replace him at full-back.Roebuck was an influential figure against Australia, his aerial skills contributing to two of England’s four tries, but if he is ruled unavailable England are not short of options
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