Unlock Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favorite stories in this weekly newsletter.

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 begin to affect the overall economy.

The high street bellwether expects annual pre-tax profits to rise by £5mn to more than £1bn for the year to January after strong full-price sales over the festive period.

But it also said that “employer tax increases, and their potential impact on prices and employment” would start to filter down on UK sales growth, referring to changes by chancellor Rachel Reeves to contributions to the national insurance.

It expects overall UK retail sales to grow by 1.4 per cent in the next financial year, up from 2.5 per cent in the 12 months to December 28.

However, the retailer still predicts revenue growth of 3.6 percent for the year to January 2026.

This is a developing story