One example of how the government can have effect on Tesco would be through taxes this could affect Tesco greatly as “The UK government has recently adopted a tax measure that affected Tesco. In 2011 the UK government increased the VAT rate from 17.5% to 20% with the aim to increase government revenue by £13 billion per year” this could have huge effects on Tesco as its going to be effect the amount of revenue that there getting each year this could affect the amount of products they can buy or the employees they have it could also affect the amount of stores they can build affecting their growth. An increase in the VAT rate leads to lower customer spending. Therefore, an increase in the VAT rate negatively affected the sales revenue generated by Tesco. Sales revenue is the key part of Tesco increasing their income of the organisation and so has an effect on their profits however this is still nothing in comparisons revenue this year. Another way in which the government is able to help Tesco would be through enhancing the education of the population ENHANCING THE SKILLS OF THE POPULATION The education and the skill of the population helps in the working environment. The government creates all of the educational qualifications such as NVQs the government also provide training courses researches, they also have laws set in place that we have to stay in education until were 18 years old this allows us they have the best possible education and increases our chances of