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Mike Ashley, the billionaire founder of Sports Direct, has voiced sharp criticism of recent cost of living and retail policies introduced by Prime Minister Andy Burnham, describing them as “populist reactions.” In a letter addressed to Burnham, Ashley accused the prime minister of endorsing quick-fix solutions without addressing deeper business challenges. He highlighted how “disastrous” business rates and the rising expenses connected to employing staff are putting significant pressure on companies.
Ashley specifically dismissed Burnham’s earlier idea to increase business rates on large warehouse operators to fund reductions for pubs, clubs, and music venues, labeling this approach “delusional.” Despite government plans to offer a 20% cut in business rates for hospitality and entertainment sectors starting in April, Ashley argued that such short-term measures fail to tackle the underlying issues affecting businesses. He urged Burnham to take bolder steps in the upcoming Budget, scheduled for October 27, focusing on policies that would genuinely lower costs for employers.
Downing Street responded to Ashley’s critique by emphasizing Burnham’s commitment to fostering a new economy that supports British businesses, promotes growth across all areas, and makes essential services like energy, water, and housing more affordable. They described recent announcements—including proposals to cut VAT on household electricity bills and reduce business rates for some firms—as merely the beginning of the government’s efforts. Burnham has also promised to rejuvenate Britain’s struggling high streets by assisting local councils in restricting the proliferation of vaping and betting shops and moving forward on plans to eliminate so-called subscription traps and prevent misleading retail pricing tactics.
Ashley’s letter, which was seen by the BBC and first reported by the Financial Times, expressed frustration with the prime minister’s approach since taking office. He reiterated long-held calls for a comprehensive reform of the business rates system that would put high street retailers and online competitors on an equal footing. He criticized the idea of targeting warehouse operators with higher business rates while reducing them for pubs and clubs, insisting this policy will only exacerbate problems. Ashley also took aim at Burnham’s plans to clamp down on recommended retail prices, arguing the real challenge lies in “price fixing in sporting goods and other markets,” pointing to rising costs of official football merchandise. The billionaire concluded by warning that without major reforms, the high street will face further decline, and he described Burnham’s current proposals as “too little, too late.”
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