Key facts
- Next CEO Lord Wolfson advised Chancellor John Healey to cut spending.
- Wolfson warned against trying to "spend your way out of a funding crisis."
- The UK government is forecast to spend over £100bn more than its income this year.
- Wolfson advocated for boosting economic growth through supply-side measures and reducing red tape.
- Wolfson suggested that business should hope for the tax burden "not to go up more."
- Wolfson defended the natural evolution of high streets, advising against government intervention in their development.
Lord Wolfson, the chief executive of retail giant Next, has urged UK Chancellor John Healey to prioritize spending cuts and supply-side reforms over tax increases in the upcoming Budget. Wolfson warned that the government cannot overcome its funding crisis by simply increasing expenditure, citing the UK's projected deficit of over £100 billion for the year.
Speaking on Thursday, September 17, 2026, Wolfson emphasized that long-term economic improvement hinges on the government controlling its spending and implementing measures that boost productivity. He stated, "Any organisation cannot carry on spending significantly more than its income and, in one way or another, that problem has to be addressed." Wolfson suggested that businesses should aim for the tax burden not to increase further, rather than seeking tax cuts.
Wolfson also proposed that the government could stimulate economic growth by reducing regulatory red tape in areas such as building regulations, biodiversity rules, and archaeological restrictions. He defended the natural evolution of high streets, advising against government intervention to dictate the types of businesses that should occupy them, suggesting instead that the market should determine their transformation.
Earlier in the week, former Bank of England chief economist Andy Haldane had criticized Andy Burnham's approach to governance. The Prime Minister, in response to Haldane, indicated a readiness to make difficult decisions during what is expected to be a challenging Budget for households.