Next warns of slowdown in its UK growth after tax increases

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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 rises introduced in the Budget starts to affect the overall economy.

The high street bellwether expects annual profit before tax to edge up by £5mn to just over £1bn for the year to January after strong full-price sales during the festive period.

But it also said that “employer tax increases, and their potential impact on prices and employment” would begin to filter through into its UK sales growth, referring to chancellor Rachel Reeves’ changes to national insurance contributions.

It expects UK full price sales growth of 1.4 per cent in the next financial year, down from 2.5 per cent in the 12 months to December 28.

However, the retailer still forecast profit growth of 3.6 per cent for the year to January 2026.

This is a developing story