# Next warns against growth-‘stifling’ tax rises in Budget

By Russ Mould — 2026-09-17

Russ Mould, AJ Bell investment director, agrees that Next recognises how strapped for cash UK households currently are.

He said: “If Next has any more rabbits left to pull out of its hat it must be a hat made to fit Goliath. The company’s ability to manage expectations is unrivalled and once again it has delivered results materially ahead of previous expectations.

“With a slight upgrade to future guidance accompanying the first-half numbers, investors felt able to reward the company with a healthy share price increase despite the stock being within touching distance of all-time highs.

“For the shares to be in this lofty position in an environment where consumer sentiment is so weak is remarkable. Next’s intervention to warn the government against further tax increases in its latest Budget suggests it recognises how strapped for cash many households are right now.

“Rather than surrendering to this tough backdrop, Next has done an excellent job of ensuring that the money people do have to spend on clothing and its other core categories is being spent with them, whether on its own branded items or on third-party products sold through its website.

“Next gets the right products in front of the right customers at the right time and at the right price points to get them through the tills or clicking the buy button. While its next-day delivery and use of stores as locations for click and collect dial up the convenience factor for shoppers. This all sounds simple but it is beyond a lot of its peer group.

“International and online sales were the biggest drivers of growth and the company’s relatively modest increase in its full-year projections provides it with some room to clear the bar once again.”

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