Asda warns there will be 'consequences' and 'cannot rule it out'

James Rodger
·2-min read
Asda warns there will be 'consequences' and 'cannot rule it out'
-Credit: (Image: Reach Publishing Services Limited)


A Asda boss says £100m hit from Labour budget could affect wages and hiring. Asda has warned that measures in the Labour Party government’s budget will be a “big burden” for the supermarket chain, costing it £100 million.

Stuart Rose, the former boss of Marks & Spencer and Topshop, who is running Asda, said the increase in employers’ NICs and changes to tax thresholds would have “consequences” and meant it could not rule out some price increases.

“If you get presented with a bill unexpectedly for around £100m pounds, even if you’re a business as big as us, that takes some digestion. So we’re looking at the consequences of that, but you cannot rule out the fact there will be some inflation,” Lord Rose told the Guardian.

READ MORE:Greggs issues 'ban' on customer habit that's infuriating staff

READ MORE:Marks & Spencer's 'outstanding' £55 thermal gilet as fans say they 'live in it winter to spring'

READ MORE Majorca demands UK tourists 'adopt' two habits and issues holiday warning

Rose added that the changes in last week’s budget meant that supermarket chain and giant Asda would “have to look hard at every piece of expenditure”, including the annual pay increase for staff, and may limit how many workers it hires.

“We’ve seen an increase in national minimum wage,” he added. “We want to attract good staff, but we have to look very, very hard to affordability.” It comes as Mr Rose said he was “embarrassed” by Asda’s performance.

“I’d like to see the business flying again, so I stick by what I said,” Rose - who is in charge of the retailer, which is rivalled by the likes of Tesco, Sainsbury's, Morrisons, Aldi and Lidl, said. “We’re in here now with our heads together, we’ve got a good management team.”

Reports earlier this year suggested there had been a rift between the Issa brothers after the breakdown of Mohsin’s marriage. Earlier this year, Rose said: “We respect Mohsin’s decision to move on from his role at Asda, where his work is complete, to be the sole chief executive of EG Group.

“We are very grateful to Mohsin for the role he has played in overseeing Asda, including launching into the growth market of convenience stores and introducing a loyalty app now used by more than 6 million customers."

Latest stories

  • Waitrose apologises to customers as product deemed a 'health risk' is recalled

    A Waitrose spokesman said: “We apologise that it has been necessary to recall this product and for the inconvenience caused.”

  • Half of firms to slash jobs and raise prices after Budget

    More than half of British businesses expect to put up prices and cut jobs to cope with the costs of Rachel Reeves’s National Insurance raid.

  • Petrol car rationing sends sales to record low

    Petrol car sales in Britain have plunged to an all-time low as manufacturers ration supplies to hit tough electric vehicle (EV) targets.

  • Electric car brands offer £11,000 discounts in sales scramble

    Car makers are discounting electric vehicle (EV) prices by an average of £11,000 per car to boost sales, amid warnings that demand from private buyers remains weaker than expected.

  • Amazon employees are ‘rage-applying’ as its return-to-office mandate looms—experts say that’s exactly what CEO Andy Jassy wants

    The tech mammoth’s RTO push is wildly unpopular—and that could be exactly what it wants.

  • Intense interest as farmers, experts analyse tax changes

    Farmers and farm family members attending Fermanagh Ulster Farmers’ Union (UFU) meeting this week, ‘Protecting Your Farm Post-Budget – The Facts’, were left in no doubt about the implications of the recent proposed reforms of Agricultural Property Relief and Inheritance Tax. The meeting in the Killyhevlin Hotel, Enniskillen on Monday night, that was attended by up to 150 people, examined in more detail the issues of farm taxation, legal affairs such as wills and succession, as well as investment

  • DS Smith flags persisting weak demand after H1 profit fall

    However the company, which has agreed to a $7.20 billion all-share takeover by U.S. rival International Paper, forecast continued modest growth in packaging volumes and said it would raise prices to offset higher input costs. Paper and packaging firms are consolidating as the sector slowly recovers from a drop in demand as customers reduced stocks following a boom in packaging sales during the pandemic. London-listed DS Smith, which provides packaging, paper and recycling services to companies including Amazon and Unilever, noted weak packaging prices and higher input costs, notably for fibre and paper, during the first half of its financial year to the end of October.

  • Will the Rolls-Royce share price hit £6 before the New Year?

    At 599.8p, the Rolls-Royce share price has come within a whisper of £6. It’s never been so high, but could the so-called ‘Santa Rally’ take it higher? The post Will the Rolls-Royce share price hit £6 before the New Year? appeared first on The Motley Fool UK.

  • Top Three Dividend Stocks To Consider

    As global markets continue to experience gains, with major indices like the Dow Jones Industrial Average and S&P 500 reaching record highs, investors are navigating a landscape influenced by geopolitical factors and economic data. In this environment, dividend stocks can offer a reliable income stream, making them an attractive option for those seeking stability amidst market fluctuations.

  • Supreme court throws out parts of Adani’s ‘embarrassing’ case against activist

    Ben Pennings ‘extraordinarily relieved’ after judge strikes out allegations that he had caused companies to withdraw from contracts connected with coalmine

  • Analysis-Gas price shock set to add to Europe's industrial pain

    Europe's struggling industries are bracing for a new gas price shock over the coming winter months, as colder weather depletes stocks, competition with Asia for liquefied natural gas intensifies, and the prospect of reduced Russian supplies looms. Since the energy crisis of 2022, when gas prices peaked at nearly 350 euros per megawatt hour (MWh), dozens of firms across Europe have closed factories and cut activity and jobs as high gas prices undermined their competitiveness. Many are maintaining reduced demand and lower manufacturing activity, with negative implications for Europe's sluggish growth.

  • Onshoring gives Bath & Body Works a 'double benefit': CEO

    Bath & Body Works (BBWI) is prepping for its big holiday shopping event this week, its annual Candle Day falling on Saturday, December 7. But ahead of the new year and President-elect Donald Trump's return to the White House, how is the candle and fragrance retailer bracing for the incoming administration's proposed tariffs? Yahoo Finance senior retail reporter Brooke DiPalma joins Bath & Body Works, Inc. CEO Gina Boswell on the floor of the New York Stock Exchange (NYSE) for a conversation on the brand's supply chain and holiday promotions. "For years now, we have been doing a lot of near-shoring and onshoring, and really pleased to say that today 85% of our production manufacturing is in North America, the majority of which is really right outside our headquarters in Columbus, Ohio," Boswell tells DiPalma, adding: "The other reason for having onshoring is just flexibility with speed and agility. And for us, that's part of our differentiated model, is to be able to get our products in the stores in weeks rather than months. So it's sort of a double benefit." To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Luke Carberry Mogan.

  • Mali issues arrest warrant for Barrick Gold CEO, document shows

    BAMAKO (Reuters) -Mali, one of Africa's biggest gold producers, has issued an arrest warrant for Barrick Gold Chief Executive Mark Bristow, a warrant document seen on Thursday by Reuters showed, escalating a dispute with the Canadian mining company. The West African country's junta-led government is seeking more income from the sector to bolster state revenues as prices of the precious metal rally and has detained mining executives to put pressure on foreign companies operating there. Four senior local employees of Barrick were briefly detained in September as the government demanded about $500 million in unpaid taxes, and then arrested again last month pending trial.

  • Elderly couple upset by delay in getting deeds back as law firm moves out of town

    A couple based in Hadleigh, Suffolk, have complained of a delay in getting their house deeds back after law firm Gotelee - now part of Mezzle - shut the town office

  • North Sea Trading Frenzy Sparks Brent Crude Price Speculation

    Record-breaking North Sea crude trades spark speculation about Brent Crude price movements, but OPEC+ production cuts and global economic factors remain key determinants.

  • Russia Lifts Requirement to Pay for Gas via Sanctioned Bank

    (Bloomberg) -- President Vladimir Putin changed the procedure for foreign buyers to pay for Russian gas, easing some concerns that US sanctions imposed on Gazprombank will lead to a halt of supplies to Europe.Most Read from BloombergKansas City Looks Back on its Long, Costly Ride With MicrotransitNYC’s Run-Down Bus Terminal Gets Approval for $10 Billion RevampAs Wars Rage, Cities Face a Dark New Era of Urban DestructionIn a decree signed off on Thursday evening, Putin lifted a requirement to pay

  • ‘Climate bomb’ warning over $200bn wave of new gas projects

    New liquefied natural gas projects could produce 10 gigatonnes of emissions by the end of the decade, close to the annual emissions of all coal plants

  • Ford UK Calls for £5,000 EV Incentives to Boost Electric Car Sales

    Ford UK's chair, Lisa Brankin, has urged the government to offer consumer incentives of up to £5,000 per car to boost electric vehicle (EV) sales and help meet climate targets. Speaking at Ford’s Halewood plant, Brankin emphasized that EV demand has lagged behind expectations…

  • Novartis cannot block generic of best-selling heart drug, US appeals court says

    Novartis failed to persuade a U.S. appeals court on Wednesday to halt MSN Pharmaceuticals' proposed generic of Novartis' blockbuster heart drug Entresto. The U.S. Court of Appeals for the Federal Circuit upheld a Delaware federal judge's August decision that found Novartis failed to prove it was likely to win a patent lawsuit against MSN over the drug, removing a roadblock for MSN's launch of what would be the first U.S. Entresto generic. Novartis said in a statement that it disagrees with the ruling and is "considering all available options to vigorously defend our intellectual property rights, including further appellate options."

  • Agricultural Bank of China (SEHK:1288) Declares 2024 Interim Dividend Amid Digital Growth Initiatives

    Agricultural Bank of China recently announced the approval of its 2024 interim profit distribution at its EGM, with dividends set at RMB 1.164 per ten ordinary shares. This move highlights the bank's commitment to shareholder value amidst its strategic focus on rural economies and technological advancements. The following discussion will delve into the bank's competitive advantages, challenges, growth opportunities, and the market risks it faces.