Ashley Targets Burnham’s High Street Vision
Mike Ashley, the prominent billionaire businessman and founder of Frasers Group, has criticized Prime Minister Andy Burnham’s high street revival plans, labeling them as “delusional” and ineffective in helping British shops. In a letter to the Prime Minister, Ashley argued that Burnham’s focus on media-friendly policies, such as regulating vape and betting shops and cutting business rates for pubs, ignores the root financial issues crippling British businesses.
Business Rates and Employment Costs: The Real Issues
Ashley pinpointed two major challenges: the “disastrous” business rates system and the increasing cost of employing people. He contended that these factors, rather than the Prime Minister’s proposed regulations, are driving job losses and shop closures. While acknowledging Burnham’s intention to review business rates in the next Budget, Ashley warned that this action is “too little, too late” and insisted that the current strategy is misguided.
Ashley also stressed the increasing cost of employing people as a major challenge. He elaborated that the National Living Wage has added significant costs to payrolls. Additionally, he highlighted the need to address the cost of employing people more broadly, though specific details about the apprenticeship levy were not provided.
Ashley took issue with Burnham’s proposed method of funding business rate cuts for pubs and clubs. He suggested that taxing larger retailers further to achieve this is not only “delusional” but also counterproductive. He argued that this approach would only serve to increase the financial burden on successful businesses, potentially leading to job losses and store closures. Instead, Ashley proposed a fair and proportionate business rates system that supports all businesses, regardless of their size or sector.
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Store Theft and the Need for Action
In addition to his concerns about business rates and employment costs, Ashley emphasized the need for action against store theft. He estimated that shoplifting and fraud cost his company around £40 million annually, a figure that has been rising in recent years. Ashley argued that this issue is not only a financial challenge but also impacts employee morale and customer experience. He called on the Prime Minister to take decisive action to tackle store theft and create a safer and more secure environment for businesses and shoppers.
Ashley also criticized Burnham’s focus on regulating vape and betting shops, suggesting that these measures are more about scoring political points than addressing the real challenges facing British businesses. He argued that these policies do little to help high street shops and may even drive footfall away from town centers, further devastating the high street.
Despite these criticisms, a Downing Street spokesperson acknowledged the challenges facing British businesses. They highlighted the government’s immediate actions, including VAT removal from household electricity bills and business rate cuts for certain sectors, such as pubs and clubs. However, Ashley’s letter shows a broader debate about the effectiveness of Burnham’s high street revival plans and the need to address the underlying financial issues affecting British businesses.
The letter from Mike Ashley to Andy Burnham was leaked to …
