John Lewis chair slams Labour's business tax raid as losses more than double

See more This is Money on Google - save us as a Preferred Source Updated: 03:26 EDT, 10 September 2026 John Lewis has slammed the Government for making it more expensive to do business as it nurses losses that more than doubled in the first half of the year. The retailer reported losses of £89million in the six months to 1 August - compared to £34million a year earlier. Chairman Jason Tarry pointed to the 'increased costs of doing business', which includes the rising cost of employment following the increase in National Insurance contributions for employers.Profits were also hit by the costs of managing the business during the succession of heatwaves over the summer. But Tarry insisted a turnaround was still underway and that the employee-owned partnership had been keen to keep investing in its shops despite pressures. John Lewis: The department shop has been investing in a refresh to appeal to beauty and health demandsSales across the group rose 2 per cent to £6.3 billion as strong trading at Waitrose offset a decline at John Lewis.Meanwhile, sales at the department store sales dropped 2 per cent as consumers were reluctant to fork out on big-ticket items such as furniture. The 'subdued' market prompted more promotions and clearance discounts too. Investments into John Lewis shops also hit profits, including new looks for shops in Cambridge and Leicester. Its refresh includes adding trendier sportswear brands to appeal to health conscious Gen Z shoppers and massive beauty halls, including in Liverpool and Oxford Street. Tarry said: ‘Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business.’His comments come as retailers fear Prime Minister Andy Burnham and Chancellor John Healey are plotting a fresh business rates raid on large shops – including stores such as John Lewis – to fund lower bills for pubs and music venues.Shops should not pay more, they say, and they are particularly concerned that rates paid by large stores, which are deemed to have a rateable value of £500,000 or more, will be increased.Former managing director Peter Ruis, who left last week, said it would be 'terrible' for the industry. Speaking last week, Ruis said: ‘It would have a terrible impact for all retailers. A lot of the smaller stores that won’t be affected by that are against it because they need people like us. The business historically makes the majority of its profits in the second half, during its peak Christmas trading period, and said it was 'set up well'. But this morning's update could spark concerns as to whether it will offer staff a bonus next year. John Lewis brought back the employee for the first time in four years last year, in a coup for bosses leading the turnaround. The business was seen to have lost its way under former bosses, focusing on non-retail ventures such as a build-to-rent property division while rival Marks and Spencer poached shoppers.Together, Tarry and Ruis, have seen signs of a revival, including by investing in shops and bringing back its historic ‘Never Knowingly Undersold’ pledge.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you