Reeves’ Budget tax hikes stopping Monsoon owner’s growth
The owner of Monsoon and Accessorize has warned the tax rises introduced by Chancellor Rachel Reeves are forcing it to stop investing in its growth.
Adena Brands, which is owned by Peter Simon, is “focusing on reducing our cost base over investing in growth” until it sees signs of strengthening consumer demand.
The business added that’s “something we do not anticipate over the next year given the likely impact of tax increases”.
The Monsoon and Accessorize owner also said it is experienced “continued subdued consumer spending and the impact of cost increases” in its current financial year which started in September.
However, the company said that despite these factors it is “seeing positive results from the investments made last year and we are making sales and profitability gains as planned”.
Reeves’ Budget ‘terrible timing’
The update has been included in the firm’s latest financial accounts which has been made public on Companies House today and were signed off by its board on Wednesday.
The company said the timing of this year’s Budget, which was delivered by Rachel Reeves on Thursday this week, was “terrible timing for all consumer businesses”.
It added that the widely trailed messages ahead of the Budget of broad tax increases had been “hurting consumer demand as consumers prioritise saving over spending in anticipation of a harsh Budget”.
During its most recent financial year, the Monsoon and Accessorize owner said its main challenges had been cos inflation driven by continued minimum wage increases “and the ripple effect as those increases impact salaried employees”.
It also said the impact of the additional National Insurance taxes imposed on wages during the period and business rates rises were also factors.
But despite these challenges, the group returned to the black with a pre-tax profit of £957,000, according to the accounts filed with Companies House.
The profit comes after the Monsoon and Accessorize owner fell to a pre-tax loss of £7.5m in the prior year.
In terms of 12 months to 30 August, 2025, the firm’s turnover also increased from £204.6m to £212.1m.