Primark owner Associated British Foods (ABF) has said the recent Budget may lead it to invest more outside the UK over fears the High Street will bear the “weight of tax rises”.

George Weston, chief executive of ABF, said: “We’re an international business as well, we have choices about where we will invest.”

It comes as the owner of the fast fashion brand reported a 43% rise in profits before tax, reaching £1.9bn over the year to 14 September.

It said “challenging weather” had hit the number of people visiting its shops between April and June, but expects a strong performance over Christmas.

Following its latest update to investors on Tuesday, the boss of ABF said it is preparing for a rise in costs after new measures were introduced by Chancellor Rachel Reeves.

During Labour’s first Budget in 14 years, the chancellor set out changes including an increase in employers’ national insurance (NI) contributions.

Mr Weston said they would see ABF’s wage bill “go up by tens of millions”.

“It’s quite clear to me that this a Budget where the weight of the tax rises are falling on business – within that, it’s fallen particularly on the high street,” he added.

During an interview with the BBC’s Laura Kuenssberg on Sunday, Ms Reeves said that she was not “immune” to the criticism her plans have received.

She suggested that the money raised would help put public finances on a “firm footing”.

The decision to increase NI contributions made by employers has come under fire from many businesses.

Despite the prospect of rising costs, Mr Weston said in an interview with the PA News agency that there was “no intention” for Primark to raise its prices for the rest of year.

Overall, Primark sales across the UK and Ireland grew by 0.7% in the year to 14 September, stripping out the effect of new shops opening.

It said that sportswear, jumpers and pyjamas had done particularly well among its womenswear ranges.

The fashion giant said that it had seen a strong start to the sales of its autumn and winter ranges, despite wetter weather washing out those of summer shoes and beachwear.

Primark saw a 6% growth in sales in the year overall and saw shirts and leisurewear items do well among men.

It comes as the British Retail Consortium (BRC) has warned of a “disappointing” October.

The BRC suggested that shoppers were holding back on spending on bigger-ticket items until the “Black Friday” sales.

Its latest figures suggest that total retail sales across the UK increased by 0.6% year-on-year in October, a drop against 2.6% seen in October 2023.

“This was part driven by half-term falling a week later this year, depressing the October figures, and November sales will likely see more of a boost,” its chief executive Helen Dickinson OBE said.

Ms Dickinson suggested that the Budget and rising energy bills might have “spooked some consumers” and blamed more mild weather recently for delaying winter purchases of items like coats and jackets.

Elsewhere on Tuesday, online retail giant Asos reported mounting losses, reaching £393m in the year to 1 September.

The group’s turnaround plan has seen it reduce stock and launch clearance sales to shift old ranges.

Chloe Collins, head of apparel at research firm GlobalData, suggested that the retailer has failed to “combat the enormous threat” from other companies include the likes of Shein, as well as the rise of second-hand clothing markets like Vinted.

But Asos boss Jose Antonio Ramos Calamonte said there were some “green shoots” in the performance of its new clothes ranges in recent months.

“We will do things in the right way and we’re going to be patient,” he said.