Sports Direct founder Mike Ashley has criticized Prime Minister Andy Burnham’s approach to business rates and the cost of living, arguing that higher employment costs and commercial property taxes are putting greater pressure on British retailers. In a letter to Burnham, Ashley described some of the government’s proposals as “populist” and warned that further taxes on large retailers and warehouses could damage the High Street.
Ashley, who remains the controlling shareholder of Frasers Group, said the government should use its first Budget on October 28 to reduce costs for employers and make significant changes to business rates. His comments were first reported by the Financial Times.
Ashley Criticizes Proposed Warehouse Rates
Burnham has pledged to support struggling High Streets and address household costs through measures including lower electricity bills and changes to business rates.
In July, the government announced a 20% business rates cut for pubs, social clubs, and live music venues from April 2027. It has also been reviewing how the wider business rates system operates.
Before becoming prime minister, Burnham suggested that relief for pubs and other High Street businesses could partly be funded through higher levies on large warehouses operated by online retailers.
Ashley rejected that approach, calling the idea of increasing rates on retailer-owned or third-party warehouses while lowering them for pubs and clubs “delusional.”
He argued that business rates and the rising cost of employing workers were among the main pressures affecting retailers and said the High Street could deteriorate further without substantial reform.
Frasers Says Retail Theft Costs About £40 Million a Year
Ashley also raised retail crime, saying theft costs Frasers Group approximately £40 million annually.
Frasers owns brands including Sports Direct, Flannels, House of Fraser, Game, Evans Cycles, Jack Wills, and Gieves & Hawkes. The group also acquired luxury department store Harvey Nichols this month and has said the business will require significant restructuring.
Ashley asked Burnham what the government would do to help turn Harvey Nichols around.
He also criticized proposals to tackle misleading recommended retail prices, arguing that policymakers should instead examine what he described as price fixing in sporting goods and other markets.
Government Says Business Support Measures Will Continue
A Downing Street spokesperson said Burnham intends to build an economy that supports British businesses while making essential costs more affordable.
The government said removing VAT from household electricity bills and reducing business rates for selected businesses were initial measures rather than the full extent of its economic program.
The Treasury is also conducting further work on business rates, including a review of how pubs and hotels are valued.
Ashley called on Burnham to pursue broader reforms rather than shorter-term measures, warning that decisions in the October Budget would have significant consequences for retailers facing higher operating costs.
Featured image credits: Wikimedia Commons
For more stories like it, click the +Follow button at the top of this page to follow us.