The chief executive of a leading UK retailer has issued a stark warning to the government, branding potential increases to welfare spending in the upcoming Budget as "madness".
Business Leader's Budget Plea
John Roberts, the founder and CEO of electricals giant AO World, has publicly called on Chancellor Rachel Reeves to prioritise cutting welfare expenditure over imposing further taxes on businesses. His comments come just a day before the highly anticipated Budget announcement on Wednesday.
Mr Roberts did not hold back in his criticism, specifically targeting speculation that the government might scrap the two-child benefit cap. He urged the Labour administration to "man up" and "make some difficult decisions" to repair the nation's public finances, rather than turning to the business community for more revenue.
Government Lacks Business Acumen, Says CEO
In a fiery interview with the PA news agency, the AO World boss expressed deep scepticism about the government's capability to manage the economy effectively. He stated that the Cabinet "couldn't run a bath let alone a business", highlighting a perceived lack of real-world commercial experience among ministers.
"Business is a force for good in the economy," Roberts asserted. "It gets demonised in this government and all it's seen as is a source of more and more tax that they can then blow on the welfare budget."
His company's own financial results provided a concrete example of the pressure businesses are under. AO World's half-year results, released on Tuesday 25 November 2025, revealed the firm faced approximately £4 million in extra costs from recent government policy changes. These included the rise in national insurance contributions and the increase to the national minimum wage that came into effect in April.
Strong Performance Despite Headwinds
Despite these increased costs, AO World demonstrated robust financial health. The company reported a 10% rise in pre-tax profits to £18 million for the six months to September 30.
Furthermore, the retailer announced that its annual profits are expected to land at the top end of its recently upgraded guidance. The company is now projecting pre-tax profits of between £45 million and £50 million for the full year.
AO World credited the growing popularity of its membership programme as a key driver behind this strong performance, showing the company's ability to innovate and grow even in a challenging fiscal environment.
