Morrisons Fin Director Doesn't Expect Govt To Impose VAT On Food

10th Jun 2010 17:54

LONDON (Dow Jones)--William Morrison Supermarkets PLC's (MRW.LN) Finance Director Richard Pennycook said Thursday he doesn't expect the U.K. government to impose value- added-tax on food in a bid to cut the deficit. Speaking on the sidelines of retail conference, Pennycook said: "I don't believe they would do something so damaging [to consumer spending]." As well as flat inflation squeezing the top line, retailers are concerned that tax hikes and spending cuts will hurt consumer spending and set back the U.K. economy recovering from a deep recession. On the budget due on June 22, Pennycook said: "real certainty about the way we are heading would be great." Pennycook said the company is focusing on its core food operations, but didn't rule out international or online retailing in the future. "Those things are not for now. This doesn't mean we rule out opportunities in the future," he said. -By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; [email protected] (END) Dow Jones Newswires June 10, 2010 12:54 ET (16:54 GMT)