Tesco has cautioned the Labour party against imposing tax increases on businesses, despite generating profits exceeding £100 per second. The supermarket chain faced criticism for its perceived corporate greed as it raised its full-year profit outlook to £1.67 billion over the past six months. This growth occurred despite the controversial rise in employers’ national insurance contributions in April, with shareholders receiving a substantial £314 million half-year dividend.

Ken Murphy, Tesco’s CEO, urged Chancellor Rachel Reeves to present a pro-growth and pro-jobs Budget in the upcoming month, emphasizing the importance of not hindering industry’s ability to deliver value to customers. Conversely, Sharon Graham, the general secretary of Unite, criticized Tesco for profiteering while many workers struggle financially, calling on the Labour government to intervene and prevent workers from bearing the brunt of corporate greed.

When questioned about Tesco’s pricing strategy, Mr. Murphy highlighted the company’s commitment to all stakeholders and noted that its price inflation remains below the industry average, resulting in significant savings for Clubcard customers. Thanks to a successful first half of the year driven by customer acquisition, cost efficiencies, and favorable weather conditions, Tesco raised its annual profit target to a range between £2.9 billion and £3.1 billion, surpassing earlier expectations.

Tesco’s market share has grown to 28.4% this year, with UK half-year sales increasing by 4.9%. Despite concerns about the Budget and economic uncertainties among customers, CEO Mr. Murphy expressed optimism about a strong Christmas season and highlighted the upcoming competition from rivals in the second half of the financial year. The company also reported launching over 470 new products, including 300 in its premium Finest range, and achieving over 11% growth in online sales through the use of artificial intelligence to optimize delivery routes.