Rachel Reeves’ tax hikes to cost Timpson £12m extra a year
Chancellor Rachel Reeves’ Autumn Budget tax hikes are set to cost the business empire of fellow government minister Lord James Timpson £12m extra a year, it has been revealed.
The Manchester-headquartered group said the increases in employer’s National Insurance contributions and the National Living Wage will eat into its earnings in the years to come.
James Timpson stepped down as chief executive in July 2024 after 22 years in the role after being made a lord and appointed minister for prisons, probation and reducing reoffending by the Labour government.
He has stepped down as a director for the duration of his time in government and Timpson is being run b acting managing director, Paresh Majithia.
The impact the Chancellor’s Autumn Budget will have on retailer Timpson has been outlined in new accounts filed for the Manchester-headquartered group – whose brands also include Max Spielmann, Johnsons The Cleaners, Snappy Snaps, Jeeves of Belgravia and The Watch Lab.
For the 12 months to 28 September, 2024, Timpson has reported a turnover of £347.2m, up from the £332.2m it achieved in the prior year.
The new accounts filed with Companies House also show Timpson’s pre-tax profit swelled from £38.3m to £48.4m over the same period.
In the prior financial year the Timpson family, which founded the brand in 1865, paid themselves the largest dividend in the group’s recent history after its financial performance “far exceeded our expectations”.
In that year they received an interim dividend of over £16.6m, up from £12.8m in the prior 12 months.
For its most recent financial year, Timpson issued an interim dividend of £14.4m.
WHF and tax hikes impacting Timpson
On its performance in the year to September 2024, the group said dry cleaning has nearly returned to pre-Covid levels thanks to the resumption of parties, holidays and dining out.
However, it added that the division is still impacted by the number of customers who work from home.
The group said Max Spielmann and Snappy Snaps “have done well against strong online competition” with sales rising by 7.3 per cent.
The core Timpson business opened 38 new pods in supermarket car parks.
On its future, Timpson said: “Our continued optimism, despite economic uncertainty, is shown by our continued high level of investment in new shops and store refits.
“Our presence in out of town supermarket sites has played, and will continue to play, an important part of our future.
“We are proactively expanding our vending operations in both new and existing accounts, while simultaneously intensifying our third party servicing operation.
“We will continue to invest in our colleagues and our culture despite the National Insurance and National Living Wage increases from April 2025 which are estimated to cost us £12m per annum.”