Next boss Wolfson urges Chancellor Healey to cut spending, not raise taxes

Key facts

• Next CEO Lord Wolfson urged Chancellor John Healey to cut spending at the Budget.
• Wolfson warned against trying to spend the way out of a funding crisis.
• The UK government is forecast to spend over £100 billion more than its income this year.
• Wolfson advocated for boosting economic growth through supply-side measures and cutting red tape.
• Wolfson suggested that business should hope for the tax burden not to increase further.
• Wolfson defended the natural evolution of high streets, advising against government intervention.

Lord Wolfson, chief executive of the retail company Next, has advised UK Chancellor John Healey to prioritize spending cuts and supply-side reforms over tax increases to address the nation's funding crisis. Wolfson warned that the government cannot stimulate economic growth through increased spending, especially with a projected deficit of over £100 billion for the current year.

Speaking on Thursday, Wolfson stated that the only factors that will alter the UK's long-term economic trajectory are government control over spending and the boosting of supply-side measures. He emphasized that any organization cannot sustain spending significantly more than its income, and this problem must be addressed. Wolfson suggested that business should hope 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 red tape related to building regulations, biodiversity rules, and archaeological restrictions. He defended the natural evolution of high streets, advising against government intervention in deciding the types of businesses that should occupy them, suggesting instead to let the market determine their transformation.

Earlier in the week, former Bank of England chief economist Andy Haldane criticized Andy Burnham's approach as a "traditional tax and spend socialist government." The Prime Minister reportedly responded by stating readiness to make difficult decisions for a challenging Budget.