Mike Ashley criticizes Prime Minister Andy Burnham's high street recovery plans

Billionaire Sports Direct and Frasers Group founder Mike Ashley has criticized Prime Minister Andy Burnham's retail and cost of living policies, describing some of the plans as populist and delusional. In a letter to the prime minister, Ashley argued that the government is focusing on media soundbites and regulation rather than addressing fundamental economic challenges. He specifically highlighted the disastrous business rates position and the increasing cost of employing workers as the primary drivers of business struggle.

Burnham has pledged to revitalize Britain's high streets through several initiatives. These include a 20 percent business rates cut for pubs, social clubs, and live music venues starting in April, as well as allowing councils to block new vaping and betting shops. The prime minister has also proposed ending subscription traps and banning misleading recommended retail prices. To fund these measures, Burnham has suggested hiking business rates on large warehouses used by online retailers like Amazon and targeting owners of empty high street properties.

Ashley rejected the idea of taxing larger retailers to subsidize pubs and clubs, calling the approach delusional. He warned that the high street would be further devastated without major reforms and urged the prime minister to use the October 27 Budget to lower costs for employers. Additionally, Ashley noted that store theft costs Frasers approximately 40 million pounds per year.

A Downing Street spokesperson defended the policies, stating that Burnham is building a new economy that backs British business and ensures essentials like energy, water, and housing remain affordable. The spokesperson noted that the government has already removed VAT from household electricity bills and capped bus fares.

Ashley, who recently acquired Harvey Nichols, also questioned how the prime minister intends to revive that luxury department store. The businessman has a history of controversy, including a 2016 admission to MPs that workers at his Derbyshire warehouse were paid below the minimum wage.