The Labour-supporting boss of Iceland has called on businesses to stop “wallowing” and “complaining” about the Labour’s recent Budget, stating that the Government is unlikely to reverse its decisions.
Richard Walker, managing director of Iceland and a former Tory donor who switched his political allegiance last January, said: “This isn’t a time for businesses to wallow… The Government isn’t going to change its mind. It was a tough Budget, but we adapt.”
Walker urged fellow business leaders to focus on shaping the future rather than attempting to undo the current Budget.
He told The Telegraph: “There’s been a lot of complaining from business. But, actually what matters much more is how the Government invests for the future and looks at long-term solutions, like skills development, industrial strategy, the business rates overhaul. How they spend all the money they are raising is more important.”
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His comments stand in contrast to the criticism that the Budget has faced from retailers such as John Lewis, Asda, Morrisons, Lidl, and Marks & Spencer, who have all warned about the financial strain caused by higher costs.
In a letter sent last month to Labour’s shadow Chancellor Rachel Reeves, over 80 retail leaders expressed concern that the sector could face an additional £7bn in costs due to higher National Insurance rates, an increased minimum wage, and new packaging levies.
They warned that job losses were now “inevitable” as a result of the changes, and that price increases in stores were likely to follow.
However, Walker questioned the validity of these concerns, pointing out that no higher costs had yet been incurred. “It’s interesting that retailers are warning over job cuts and price rises when no higher costs are coming because nothing’s changed yet,” he said.
The Iceland boss added that his company was “fairly comfortable and we can mitigate and manage it,” despite the potential challenges.
Walker is part of a small but vocal minority of retail leaders who have come out in support of Labour’s controversial first Budget. Speaking to The Mirror, Jollyes CEO Joe Wykes has backed Chancellor Rachel Reeves’ business tax hikes and warned that rival firms could use it as an “excuse” to raise prices and cut jobs, with some potentially “profiteering”.
Walker was speaking as the frozen food specialist revealed its interest free ‘microloans’ scheme is returning for Christmas, which offers customers up to £100 to spend at Iceland or its sister store, The Food Warehouse.
The Food Club initiative, backed by not-for-profit lender Fair For You, allows customers to borrow funds and repay at £10 per week.
The supermarket first rolled out the loans scheme at the start of 2022 in a bid to offer an “ethical and affordable alternative” to the “ultra-high-interest lenders, or even illegal loan sharks”, which families might otherwise resort to.
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