Big business bosses have urged Chancellor Rachel Reeves to not launch a series of tax raids ahead of her upcoming budget.
Asda chairman Allan Leighton said the Treasury should invest in Britain rather than “taxing everything in some way, shape or form”.
Government officials are searching for ways to raise cash amid dire warnings about the state of the economy and an up to £50billion blackhole in the public finances.
Among the cash raising policies reportedly under consideration is a “landlord tax” that would add National Insurance to income from rent and a “mansion levy” to hit the owners of high-value properties with capital gains tax when they sell their properties.
Ms Reeves is also understood to be looking at raising business rates for larger premises, which would add to bills for big supermarkets and shops.
Mr Leighton described the proposal as “very unhelpful”. He joined more than 60 retail bosses, including chiefs at Tesco, Sainsbury’s and Boots, in warning Ms Reeves that raising taxes further could contradict her plans to improve UK living standards.
“All these things don’t make life easier,” the Asda executive chairman told The Telegraph.
“They are contributing to inflation, and inflation is hitting the pocket of the consumer.”
He added that if the Chancellor wants to grow the economy she should move away from "taxing everything in some way, shape or form”.
City of London figures also fear the Chancellor will target banks to help shore up the public finances in her budget.
One senior banker told the Financial Times: “Politically, it is an easy target. No one likes banks. They are seen as a whipping boy for the government.
Another added: “We aren't stupid. There's a bunch of Labour MPs, including Angela Rayner, who are looking for ways to get more money. Financial Services are an obvious target.”
In a leaked memo to the Chancellor in May, Miss Rayner proposed raising the higher corporation tax rate for banks from 28% to 30%.
The warnings come as new figures this week revealed that food prices have risen at their fastest pace in 18 months.
Food inflation hit 4.2 per cent this month, up from 4 per cent in July, marking the highest level since February 2024, according to the British Retail Consortium (BRC).
The trade body said this adds further pressure to families already struggling with the cost of living.
The Bank of England said the increase in national insurance contributions in April had contributed to accelerating food prices.
Helen Dickinson, chief executive of the BRC, said: “Shop price inflation hit its highest rate since March last year, fuelled by food price rises.
“This adds pressure to families already grappling with the cost of living.
“Retailers continue doing everything they can to limit price rises for households, but as the Bank of England acknowledged, the £7billion in new costs flowing through from last year’s budget has created an uphill battle for retailers.”
