Asda chair warns October budget could be 'tipping point'

Asda chair Allan Leighton has cautioned that Prime Minister Andy Burnham's upcoming October budget could represent a critical "tipping point" for the British economy. Leighton expressed concern that current economic strategies, characterized by high taxation on consumers and increased costs for businesses, are inhibiting growth.

Leighton stated that it is "too early to tell" if the government is committed to supporting business growth, emphasizing that the budget will be a crucial moment for consumer confidence and national economic expansion. He has previously been critical of governments for making dealings with businesses more difficult and less supportive.

These sentiments echo a recent intervention by Mike Ashley, founder of Frasers Group, who accused Burnham of prioritizing "populist" policies over essential long-term economic solutions. Ashley specifically criticized Burnham's approach to business rates, a tax that Leighton also believes requires reform to significantly benefit British firms. While retailers have called for a replacement of the business rates system, Burnham recently announced a review focused only on pubs and hotels.

Leighton, who returned to Asda in November 2024, is undertaking a turnaround of the supermarket. He expressed confidence in restoring the business, estimating the process will take three to five years. Asda has recently shown signs of recovery, returning to sales growth for the first time in over two years in the seven weeks leading up to mid-August. The company reported a pre-tax loss of £989 million for the year ending December 2025, though its debt pile decreased from £4.1 billion to £3.5 billion. Leighton noted that the appointment of a new chief executive is not imminent, with a preference for an internal candidate to emerge.