Currys boss warns of muted consumer confidence after Budget tax raid

Currys' chief executive Alex Baldock warned of a muted consumer environment ahead of the crucial Christmas trading period, citing an elevated tax burden on shoppers following Labour's Budget last month. Updated: 10:50 GMT, 18 December 2025.

The group said it did not expect any improvement in the UK consumer outlook, confidence or spending, looking forward. "We're not counting on any improvement in the UK consumer outlook, confidence or spending, looking forward," Baldock said, underscoring that the group does not expect relief for shoppers. He noted that Currys has been weighed down by increases in the national living wage and national insurance costs from last year's government budget.

If it wasn't for these taxes, profits would have been up twice as high in the UK for the six months to 1 November, Baldock claimed. He also warned that elements of the employment rights bill would make some retail jobs 'unviable.' Baldock said: "The harder, riskier and more expensive you make it to employ people, the fewer people will be employed." Retail chiefs, including Next's Simon Wolfson, have argued that the new rules – which will require a guaranteed hours model – are not fit for industries reliant on seasonal and temporary work.

Baldock cited analysis from the Retail Jobs Alliance – which also includes major employers Tesco and M&S – that the total Government measures will see a reduction in around 300,000 retail jobs over the next three years.

Despite the gloom, Currys reported sales of £4.2 billion for the six months to 1 November, up 4% from the prior year, while pre-tax profits rose to £22 million, more than doubling the year-ago period. Shares rose 10.5% to 139.9p by late morning, extending gains for 2025 to roughly 50%. Baldock said AI technology and electronic beauty products are expected to be among the bestsellers this Christmas.

Julie Palmer, managing partner at Begbies Traynor, said: "With shoppers tightening their belts, retailers like Currys who provide value and quality along with positive online and in-store experience will be able to take the share of sales and loyalty from customers when they do decide to spend." She added that Currys hasn't been immune to rising costs, but said the firm's efforts to improve sales and margins should help it weather the Budget's impact. "Rising rates, minimum wage, and the calling in of unpaid taxes are unlikely to benefit smaller players, which may shutter more stores that cannot adapt."

Analysts note that the broader policy environment is a key driver of investment decisions in retail. Some warn that higher labour costs and tax changes could squeeze margins further and fuel a shift toward value-led, omnichannel strategies as consumers remain selective about their discretionary spending.