B&Q owner warns of business rates raid risk in Budget

By the Editorial Team · Wednesday, September 23, 2026

Kingfisher CEO Thierry Garnier warned that proposed business rate reforms targeting large retail stores could unfairly penalize major retailers, urging the government to avoid adding tax burdens ahead of the UK Budget. Despite mixed sales results, Kingfisher raised its full-year profit forecast following strong half-year performance, while preparing for Garnier's upcoming departure and emphasizing the need for fair treatment of physical retailers versus online competitors.

The chief executive of Kingfisher, the parent company of home improvement retailer B&Q, has expressed concern over potential changes to business rates for large retail stores in the upcoming UK Budget. Thierry Garnier warned that reforms targeting bigger premises could risk a “business rates raid,” potentially penalizing major retailers as the government considers ways to fund reduced bills for pubs and music venues.

Garnier emphasized the importance of large stores as anchors in retail parks and high streets, noting their role as significant employers in urban areas. He urged policymakers, including the Labour Party, not to impose heavier tax burdens on these premises, highlighting the broader economic impact such measures could have.

Kingfisher released a positive trading update alongside Garnier’s comments, raising its full-year profit forecast after posting robust half-year results. Adjusted profits for the six months ended July 31 increased by 10% to £404 million, driven by improved margins and effective cost control. The company now expects full-year adjusted profits to be between £595 million and £635 million, up from a previous forecast range of £565 million to £625 million.

Despite the overall increase in profits, same-store sales across Kingfisher’s brands showed only modest growth of 0.3%. Within the UK market, Screwfix, which operates over 981 stores across the UK and Ireland, posted a 5.6% increase in sales in the first half of the year. In contrast, B&Q, with 318 stores, experienced a 2.9% decline in sales, including an 8.1% drop in demand for high-value items during the second quarter. Garnier attributed some of B&Q’s weaker performance to the recent heatwave and a softer demand for bathroom products, which the company is currently redesigning. He noted that consumers are placing greater emphasis on kitchens rather than bathrooms in their home improvement spending.

Garnier, who is preparing to leave Kingfisher to take on a leadership role at Dutch-Belgian supermarket group Ahold Delhaize, reaffirmed his commitment to Kingfisher during the transition period. He indicated that the company’s board has a well-advanced succession plan in place and the search for his successor is progressing rapidly.

On the broader retail sector, Garnier stressed the need for equitable treatment between physical retailers and their online competitors, calling for a "level playing field" in tax policies. He described retail as a key driver of growth and employment, urging the government to recognize and support its role in the economy ahead of the Budget announcement.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.