Rising National Living Wage and business rates a 'lethal cocktail,' says Tesco CEO

Retailers could soon face a “potentially lethal cocktail” from the ascending National Living Wage, the apprentice levy, and increasing business rates, according to the CEO of Tesco.    

Dave Lewis warned that jobs could be lost as a result. For every £1 of tax paid on profits, Tesco pays £2.31 in business rates.

Speaking at the CBI Conference, he said: “A balance has to be struck between allowing investment for growth and collecting taxes through mechanisms like the apprenticeship levy, which wipes out the equivalent of our whole training budget.

“Our concern, and the concern of many colleagues, is that there is pressure to increase base pay at the expense of benefits. We don’t think this is the answer. We shouldn’t simply strip down employment to an hourly rate or draw arbitrary lines. It’s more complex than that.”