Mike Ashley, the billionaire founder of Sports Direct and Frasers Group, has written to Prime Minister Andy Burnham accusing him of failing to tackle the cost of living crisis and branding his high street revival plans "populist" and "too little too late".
Ashley's letter to the Prime Minister
In a letter seen by City AM, Ashley said the factors driving the UK's soaring cost of living "have not been assisted by recent government policies and are not going to be helped by your recent populist proposals". He accused Burnham of chasing headlines rather than delivering meaningful solutions for hard-pressed households and businesses.
Ashley took particular aim at the Prime Minister's "disastrous" stance on business rates. Burnham has committed to reviewing how business rates are calculated for pubs and hotels, and has previously backed a levy on warehouses to fund tax relief for high street retailers, as reported by City AM.
Warehouse tax called 'delusional'
Retailers have long cautioned that a warehouse tax could drive up costs for consumers. Ashley, who leads the Derbyshire-based Frasers Group, told Burnham the measure would be "delusional".
"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. "Shortsighted or populist reactions to underlying business challenges are not the answer. You have the chance to make a difference or get it horribly wrong."
Reaction to 'everyday fixes'
The retail billionaire ridiculed Burnham's commitment to deliver "everyday fixes" on the cost of living, which have included a £2 bus fare cap and the removal of VAT on household electricity bills.
"This is certainly a time for pragmatism and brave solutions but applying that to the underlying issues – not jumping on 'everyday fixes' or band wagons that only address part of the problem," he wrote.
Ashley's comments arrive as businesses increasingly push back against Burnham's cost-of-living promises while their own overheads continue to climb. On Monday, a coalition of prominent business figures including billionaire political donor John Caudwell and retail heavyweight Lord Stuart Rose condemned the "creep of taxes" affecting companies nationwide. In an open letter, the City veterans called on the government to rule out new taxes on founders, including levies on dividends, capital gains and business assets.
Budget concerns and 'fake' discounts
On Wednesday, Burnham told the Financial Times that he will address the "challenging" cost of doing business as he seeks to dispel concerns that October's Budget will usher in another punishing tax assault on British enterprises.
In his letter to Burnham, Ashley also took aim at the Prime Minister's commitment to tackle what he describes as "fake" discounts. Aldi chief executive Giles Hurley has thrown his weight behind this initiative, accusing rival supermarkets of misleading customers with loyalty pricing schemes.
Ashley said: "The driving down of prices through discounting is what helps the consumer by giving them better value and helps with their cost of living. Driving down prices through discounting against an RRP can't be what you really mean when you talk about 'rip off Britain'."
Before expanding into luxury fashion through Frasers Group's takeover of Harvey Nichols and building a stake in Hugo Boss, Ashley built his reputation by offering affordable sportswear at Sports Direct. The letter underscores the growing tension between the government's retail policies and business leaders concerned about the impact of new taxes and regulations on the UK's competitiveness.
