We’ll pull Neet support if Healey hikes taxes, warns B&Q owner
Thierry Garnier, the chief executive of Kingfisher, has issued a stark warning to Chancellor John Healey regarding the future of youth employment initiatives. The leader of the FTSE 100 retail giant, which operates brands like B&Q and Screwfix, stated that the company might be forced to retract its assistance for unemployed young people if the government proceeds with planned tax increases in the upcoming Budget.
TAX Hikes Threaten Youth Employment
Writing for City AM, Garnier emphasized that the Chancellor needs to provide an exemption for retail outlets from the most expensive tier of business rates. Without this relief, Garnier cautioned that the retail sector might see a rise in youth unemployment. He noted that retailers are among the primary employers of young people in the United Kingdom and are eager to address the crisis of those not in employment, education, or training, commonly referred to as Neets.
Kingfisher has previously pledged to provide work experience opportunities at its B&Q and Screwfix locations to help mitigate this social issue. However, Garnier clarified that the continuation of these programs is contingent upon the fiscal decisions made by the Chancellor later this month. Garnier stated, "We share the Government’s concerns about the number of young people not in employment, education or training (NEET), and we have committed to offering work experience placements at B&Q and Screwfix to help tackle this." He added that while the firm wants to maintain this support, "whether we can depends on what the Chancellor decides in this Budget."
Reforming the Business Rates System
The British Retail Consortium, an organization representing major firms including Kingfisher, has also called on the Chancellor to reverse certain increases to employer national insurance contributions. These hikes were originally put in place by Healey's predecessor, Rachel Reeves. Garnier identified the restructuring of business rates as the "single biggest opportunity for the Chancellor to help retailers keep investing" within the country.
For years, the retail industry has argued that business rates represent an antiquated tax model that unfairly penalizes physical storefronts while benefiting online competitors. Retailers are now calling on the Labour administration to honor its campaign promise to "replace" the current tax framework. Garnier argued that if the government is serious about its growth agenda, it must create a balanced environment for both traditional shops and digital-only businesses. He noted that while the Chancellor faces "difficult choices," a new administration provides "new opportunities for change."
Leadership Changes at Kingfisher
Earlier this week, representatives from the British Retail Consortium and executives from major chains like Tesco and Sainsbury’s met with the Chancellor. During this session, they presented their requirements for the Budget, focusing on the reform of business rates and strategies to assist Neets. This pressure comes at a time when Kingfisher is seeing financial success; the company recently increased its profit outlook following a strategic shift toward trade clients, which bolstered sales.
Amidst these policy debates, Kingfisher is also preparing for a change in leadership. Garnier previously announced his plans to exit the company to join Ahold Delhaize, a retail group based in the Netherlands and Belgium. On Tuesday, Kingfisher confirmed that Sebastian Gundel is scheduled to take over the chief executive role in February. Garnier’s final message to the government was clear: to deliver growth, they must "take shops out of paying the higher rate."
Source: cityam.com · 2026-10-14