Key facts
- Mike Ashley criticized Andy Burnham's proposals for the British high street as 'populist' and insufficient.
- Ashley wrote to the Prime Minister, stating that recent government policies have not helped the cost of living crisis.
- He accused Burnham of prioritizing media attention over practical solutions for households and businesses.
- The retail billionaire also criticized the government's stance on business rates.
- Frasers Group, owned by Ashley, recently acquired Harvey Nichols for £40 million.
- Frasers Group indicated that Harvey Nichols will undergo significant restructuring.
Retail tycoon Mike Ashley has strongly criticized proposals by Andy Burnham aimed at reviving the British high street, labeling them as "populist" and "too little too late." In a letter to the Prime Minister, Ashley argued that the government's policies have exacerbated the cost of living crisis and that Burnham's plans offer superficial solutions rather than addressing underlying economic issues.
Ashley accused Burnham of seeking media attention with "everyday fixes" like a £2 bus fare cap and VAT removal on household electricity, suggesting these do not tackle the core problems. He also criticized the government's approach to business rates, advocating for policies that support growth and entrepreneurialism instead of increased regulation.
This intervention follows a broader backlash from the business community. Influential figures, including billionaire John Caudwell and retail veteran Lord Stuart Rose, have voiced concerns about rising taxes on businesses. Burnham, however, has stated his intention to address the challenging cost of business ahead of the October Budget.
In related news, Frasers Group, founded by Ashley, recently acquired the luxury department store chain Harvey Nichols for £40 million. The group indicated that significant restructuring would be necessary for the department store, which has faced consecutive losses in recent years.