Tesco to close some Express stores an hour earlier after £235M hit from Rachel Reeves’ tax raid

By KATHERINE LAWTON

Updated: 10:28 BST, 1 June 2025

Tesco is set to close some Express stores an hour earlier after the supermarket giant was hit by a £235million rise in staff costs by Rachel Reeves’ tax raid. 

The chain is trialling shorter opening hours at the Express stores, it is understood, closing some at 10pm rather than the usual 11pm. 

Meanwhile, Tesco is also anticipated to have less staff running those stores during their opening hours, The Telegraph first reported. 

The changes were created to ‘make things simpler for our colleagues and to ensure that we are running these shops in the most efficient way’, a spokesman said – adding that the trial will take place in a number of stores. 

It comes after Tesco’s chief executive Ken Murphy revealed the supermarket giant was doing its best to offset a burst of extra costs following Reeves’ tax raid, which took effect from April this year. 

After the raid was announced, Tesco said it was facing a serious rise in its staffing bill, including a £235million increase in National Insurance contributions. 

Tesco is set to close its Express stores an hour earlier after the supermarket giant was hit by a £235million rise in staff costs by Rachel Reeves’ tax raid

It comes after Tesco’s chief executive Ken Murphy (pictured) revealed the supermarket giant was trying to offset a burst of extra costs following the Reeves’ tax raid, which took effect from April 

Under the changes, employers fork out a tax equivalent to 15 per cent of their workers’ pay packets, an increase from 13.8 per cent previously. 

Tesco is dealing with affected staff and considering individual circumstances and whether they need to transfer to another store, it is understood. 

A Tesco spokesperson said: ‘Our Express format is a strong and growing business, providing great value and convenience for customers on their doorstep. 

‘In a small number of stores, we are trialling some tweaks to our operational routines to make things simpler for our colleagues and to ensure that we are running these shops in the most efficient way. 

‘These changes aren’t visible to our customers, who will continue to receive the same great service they expect, and there are no changes to the range of products we sell.’

In April, Tesco warned its profits would drop by as much as 14per cent this year as it gets ready to invest £400million in price cuts. 

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Tesco to close some Express stores an hour earlier after £235M hit from Rachel Reeves’ tax raid

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