Tesco to lower costs to fund price cuts

New boss sets out plans after accounting scandal.

Tesco will slash costs and sell assets to fund lower prices and mend its finances, Britain’s biggest retailer said yesterday, as its new boss set out plans to fight back from years of market share losses and an accounting scandal.

Dave Lewis, poached from Unilever to rescue Tesco from the biggest crisis in the 96-year history, said that he would halve capital spending, scrap the dividend, close the head office, and shut the final salary pension scheme to save money.