Mike Ashley has written to Prime Minister Andy Burnham calling for the government to focus on what he describes as the underlying pressures facing retailers.
In a letter dated 27 August, the Frasers Group founder criticised the government’s recent cost-of-living proposals, arguing that they amount to “quick fixes” rather than addressing the wider economic challenges facing businesses and consumers.
“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,” Ashley said.
The business veteran called the government’s approach “delusional”, citing “disastrous” business rates, employment costs, restrictions on discounting and retail theft, which Ashley predicts costs Frasers approximately £40m per year.
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The letter also challenged the prime minister to “help” British retailer Harvey Nichols, which was acquired by the Frasers Group earlier this month.
“In recent weeks Frasers bought the iconic Harvey Nichols from the administrators to save yet another great British retailer from financial oblivion, bringing it back into British ownership again,” Ashley said.
“My challenge to you is – how are you going to help with turning Harvey Nichols around?”
Frasers tycoon’s letter added that he ‘agreed’ with comments made by Tory peer and former Marks & Spencer boss Lord Stuart Rose, who reportedly slammed the government’s crackdown on high street shops and gambling hubs as “a lot of bollocks about nothing.”
Earlier this month, Lord Rose spoke during BBC’s Newsnight to brand the initiative as “just a lot of hot air”, arguing that restricting specific storefronts will not do anything to revitalise struggling commercial areas, unless the government tackles crippling business rates and rising employment costs.
In July, Prime Minister Andy Burnham announced a 20% cut to business rates for pubs, social clubs, and live music venues.
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