Retail tycoon Mike Ashley has launched a blistering attack on Prime Minister Andy Burnham's high-street strategy, branding parts of the Government's approach to business rates and retail regulation “delusional” and warning that ministers risk making life harder for major retailers.
In a letter to the Prime Minister, the Frasers Group founder criticised proposals designed to revive town centres, arguing that ministers are focusing on eye-catching interventions rather than the underlying costs facing retailers.
Ashley's intervention puts one of Britain's best-known retail entrepreneurs directly at odds with Burnham over a flagship strand of the Government's domestic agenda.
Downing Street has defended the Prime Minister's programme, pointing to business-rate cuts for pubs, clubs and live music venues and insisting that the wider strategy is intended to support growth and revive struggling high streets.
Ashley brands approach ‘delusional’
The Financial Times and The Times report that Ashley wrote directly to Burnham to challenge the Government's plans for the high street.
He described parts of the strategy as “delusional” and criticised what he regards as a “populist” approach to retail policy.
The language is Ashley's assessment rather than an independent finding, but it marks an unusually personal intervention by the billionaire businessman against the new Prime Minister's economic programme.
Ashley argued that large retailers should not be asked to shoulder additional costs in order to fund relief elsewhere in the economy and said ministers should instead address the wider business-rates system and rising employment costs.
Row over business rates
The Government has already announced a 20% cut in business-rates bills for pubs, social clubs and live music venues in England from April 2027.
Downing Street says the measure will benefit nearly 32,000 venues and save a typical pub an estimated £1,100 in the next financial year.
The official announcement says the changes will be fully funded, including through a review of reliefs available to businesses the Government says do not make a positive contribution to local communities, citing vape shops as an example.
Reporting on Ashley's letter says he also objected to the prospect of greater tax pressure falling on large retail warehouses and other major operators as ministers look at how to rebalance the rates system.
That warehouse element should be treated as part of the policy debate and Ashley's criticism rather than as a separately confirmed final tax measure unless and until the Treasury sets out detailed proposals.
Burnham says high streets need intervention
Burnham has made high-street revival one of the early themes of his premiership.
On 11 August, the Government announced plans to give councils stronger powers to tackle concentrations of vape shops, betting outlets and adult gaming centres in struggling town centres.
The Prime Minister said ministers wanted to reverse the “hollowing out” of high streets and restore local control over the mix of businesses operating in town centres.
The Government has also promised wider reform of the business-rates system, including a review of Small Business Rates Relief at the Budget.
Ashley attacks crackdown on discounting
Ashley also criticised the Government's approach to retail pricing and proposals aimed at tackling misleading discounts.
He argued that aggressive discounting can benefit consumers by lowering prices during a cost-of-living squeeze and warned ministers against policies that could discourage genuine price competition.
The Frasers founder has long clashed with major sportswear suppliers over distribution and pricing, and used his letter to raise concerns about what he sees as restrictions imposed by powerful brands.
He called for tougher action where suppliers restrict product availability in ways that, in his view, keep consumer prices artificially high.
£40m shoplifting claim
Retail crime was another major theme of Ashley's intervention.
He said shoplifting costs Frasers Group around £40 million a year and called on the Government to take stronger action to protect retailers and their staff.
The £40 million figure is Frasers Group's own estimate and has not been independently verified by the Government.
Retailers across Britain have repeatedly raised concerns over theft, violence and abuse against shop workers, making crime another area where Ashley says the Government's high-street strategy should be more ambitious.
Ashley asks for urgent meeting with Prime Minister
Ashley has asked Burnham for an urgent meeting to discuss the pressures facing the retail sector.
His letter argues that ministers should place greater emphasis on entrepreneurship, competition and reducing operating costs rather than introducing additional regulation.
He also used the intervention to press his case on the future of major retail businesses, following Frasers Group's continuing expansion across sportswear, department stores and luxury retail.
Downing Street defends Burnham's record
Downing Street rejected the suggestion that the Government is failing British business.
A spokesperson pointed to the Prime Minister's measures to reduce costs for households and targeted businesses, including business-rate relief for hospitality and live music venues.
The Government says those measures are only the beginning of a broader programme aimed at boosting investment and economic growth across the country.
Its official high-street policy also includes action against tax non-compliance by sellers using online marketplaces, with revenue from reforms intended to be reinvested in the business-rates system.
Political test for Burnham's high-street agenda
Ashley's attack creates an awkward political challenge for Burnham because it comes from a businessman with decades of experience operating some of Britain's largest retail chains.
Supporters of the Prime Minister's strategy will argue that targeted relief is needed to protect pubs, clubs, music venues and other businesses that help sustain town centres.
Ashley and other critics contend that shifting costs around the business-rates system risks creating new losers while leaving the fundamental tax burden unresolved.
The argument is likely to become more intense as the Chancellor prepares the Budget and the Government develops the next stage of its promised business-rates reforms.