Billionaire businessman Mike Ashley has described Andy Burnham’s high street recovery strategy as "delusional", insisting it will fail to help salvage British retail.
The Frasers founder launched a strong critique of the Prime Minister, saying that shops will be "further devastated" unless business rates are reduced.
In a letter to the Labour leader, he accused Mr Burnham of seeking media soundbites instead of confronting the country’s fundamental economic challenges.
Restoring Britain’s high streets has been a central focus for the Prime Minister since taking office in No 10, with pledges to allow councils to block vape and betting shops and cut business rates for pubs.
In the letter, which has been seen by multiple outlets, Mr Ashley wrote: “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 continued: “It is the disastrous business rates position (which I have raised many times over the years) and the dramatically increasing cost of employing people that are really causing business to struggle.
“Ironically, this only leads to a further loss of jobs which is the opposite of what was intended.”
In his first week as prime minister, Mr Burnham announced plans to slash business rates for pubs, clubs, and live music venues across England, as he continues his policy blitz to cut costs for the public.
The prime minister announced venues would benefit from a 20 per cent cut in business rates from April next year as he seeks to “bring hope back across the country”.
No 10 said the overhaul will be funded by reviewing reliefs for businesses that “do not make a positive contribution to local communities” such as vape shops and by cracking down on online marketplaces that do not comply with tax obligations.
Mr Burnham also signalled he would introduce a so-called “Amazon tax” with a big reform of business rates in a bid to save Britain’s high streets.
He said he would look at hiking business rates on the giant warehouses which are emerging to service massive online retail companies like Amazon, while lifting high street shops and pubs out of having to pay the business rates.
While Mr Ashley said he welcomed Mr Burnham’s comments on looking at business rates in the next Budget, he warned it was “too little, too late”.
He argued that if the Prime Minister’s answer is taxing larger retailers even more to reduce business rates for pubs and clubs, “then that is simply delusional”.
Mr Ashley also said more needed to be done to tackle store theft, which he estimated to cost Frasers around £40 million a year.
A Downing Street spokesperson said: “For too long, Westminster has not been working for people across Britain.
“The Prime Minister has said he will lead a cost-of-living government.
“This means immediate action to provide the breathing space people need.
“In his first month in office, the Prime Minister has already removed VAT from household electricity bills, cut business rates for pubs, clubs and music venues and capped bus fares.
“And this is just the start.
“The Prime Minister has said he will build a new economy that backs British business, delivers growth in every postcode and ensures the essentials in life – like energy, water and housing – are affordable again.”
