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High street retailer Next has warned that its growth rate in the UK will slow this year as the impact of tax increases introduced in the Budget begins to affect the wider economy.
The high street leader expects annual pre-tax profits to rise by £5m to just over £1bn for the year to January following strong full-price sales over the festive period.
But it also said “tax increases for employers and their potential impact on prices and employment” would begin to filter through UK sales growth, referring to Chancellor Rachel Reeves’ changes to National Insurance contributions.
UK full price sales are expected to grow by 1.4 per cent in the next financial year, down from 2.5 per cent in the 12 months to 28 December.
However, retailer they still forecast profit growth of 3.6 percent for the year to January 2026.
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