Britain’s high streets face further devastation unless the government slashes business rates, one of the country’s most prominent retail figures has warned.
Prime Minister Andy Burnham’s plans to breathe new life into struggling town centres have been branded “delusional” and doomed to fail.
Billionaire Mike Ashley, founder of Frasers, launched a blistering attack on the Labour leader in a letter seen by multiple outlets.
Mr Ashley cautioned that shops across the country will be “further devastated” without meaningful cuts to business rates, dismissing the Prime Minister’s approach as woefully inadequate.
The intervention marks a sharp escalation in tensions between Downing Street and the retail sector.
In his letter to Mr Burnham, Mr Ashley accused the Prime Minister of chasing headlines rather than tackling the fundamental problems facing British businesses.
“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 wrote.
Mr Ashley pointed to the soaring cost of employing staff as a key factor driving businesses to the wall.
He warned that these pressures were ironically triggering further job losses, the very opposite of what the government intended.
Although he acknowledged Mr Burnham’s pledge to examine business rates in the next Budget, Mr Ashley dismissed the commitment as “too little, too late”.
High streets have been hit by a wave of closures since the pandemic | PA
Mr Ashley argued that if the Prime Minister’s solution involves heaping additional taxes on larger retailers to subsidise rate reductions for pubs and clubs, “then that is simply delusional”.
The Frasers founder also raised the alarm over rampant shoplifting, which he estimated costs his business roughly £40 million each year.
He called on the government to do far more to combat store theft, suggesting the scale of the problem was being overlooked by ministers.
Prime Minister Andy Burnham’s plans to breathe new life into struggling town centres have been branded “delusional”
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GETTYReviving Britain’s high streets has been a central priority for Mr Burnham since entering Downing Street, with promises to empower councils to block vape and betting shops.
Downing Street pushed back against Mr Ashley’s criticism, insisting the Prime Minister was delivering real change.
A spokesperson said Mr Burnham would lead “a cost-of-living government” focused on giving people “the breathing space” they need.
Mr Ashley accused the Prime Minister of chasing headlines rather than tackling the fundamental problems facing British businesses
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PAThe spokesperson highlighted that within his first month in office, Mr Burnham had already scrapped VAT on household electricity bills, reduced business rates for pubs, clubs and music venues, and introduced a cap on bus fares.
“This is just the start,” the spokesperson added, pledging that the Prime Minister would “build a new economy that backs British business, delivers growth in every postcode” and makes essentials such as energy, water and housing affordable.