Billionaire businessman Mike Ashley has written to Prime Minister Andy Burnham, branding his high street revival plans “delusional” and warning that shops will be “further devastated” unless business rates are cut.
The Frasers founder heavily criticised the Prime Minister in a letter, accusing him of picking good media soundbites rather than addressing the country’s underlying financial issues.
Letter criticises Prime Minister's approach
In the letter, which has been seen by multiple outlets, Mr Ashley wrote: “Rather than address the real underlying issues of how the country’s financial affairs are managed, and supporting growth and entrepreneurialism in business, it is easier for you to pick topics which provide good media soundbites and the old salve of yet more regulation – which is not what the country needs to become competitive.”
He continued: “It is the disastrous business rates position (which I have raised many times over the years) and the dramatically increasing cost of employing people that are really causing business to struggle.
“Ironically, this only leads to a further loss of jobs which is the opposite of what was intended.”
Business rates and store theft
While he welcomed Mr Burnham’s comments on looking at business rates in the next Budget, he warned it was “too little, too late”. He argued that if the Prime Minister’s answer is taxing larger retailers even more to reduce business rates for pubs and clubs, “then that is simply delusional”.
Mr Ashley also said more needed to be done to tackle store theft, which he estimated to cost Frasers around £40 million a year.
Downing Street response
A Downing Street spokesperson said: “For too long, Westminster has not been working for people across Britain.
“The Prime Minister has said he will lead a cost-of-living government.
“This means immediate action to provide the breathing space people need.
“In his first month in office, the Prime Minister has already removed VAT from household electricity bills, cut business rates for pubs, clubs and music venues and capped bus fares.
“And this is just the start.
“The Prime Minister has said he will build a new economy that backs British business, delivers growth in every postcode and ensures the essentials in life – like energy, water and housing – are affordable again.”
Reviving Britain’s high streets has been a key focus for the Prime Minister since he took over in No 10, promising to give councils new powers to block vape and betting shops and pledging to cut business rates for pubs.
