Mike Ashley, billionaire owner of the Frasers Group, has sharply criticized Prime Minister Andy Burnham’s proposals to revive the High Street, describing them as “delusional” and warning that retailers could face further devastation without tax relief measures. Ashley, whose portfolio includes retailers such as House of Fraser, Flannels, Sofa.com, Jack Wills, Evans Cycles, and the recently saved Harvey Nichols, outlined his concerns in a letter addressed to the Prime Minister ahead of the upcoming Budget on October 28.

Burnham’s plan aims to ease pressures on businesses by offering discounts on business rates for pubs and clubs. To fund these measures, the government proposes increasing business rates on online retail warehouses and implementing stricter regulations on vape and betting shops. These initiatives come amid growing complaints from businesses about consumers’ reduced spending power and rising operational costs.

However, Ashley criticized the approach, particularly the idea of higher taxes on larger retailers. He called the proposal to increase business rates “simply delusional,” arguing that it would worsen challenges for High Street businesses. While acknowledging the Prime Minister’s indication that business rates would be reviewed in the next Budget, Ashley described this as “too little, too late.”

The Frasers Group owner emphasized what he sees as more pressing issues affecting the economy, including what he calls a “disastrous” business rates system and the mounting cost of employing staff. He pointed to recent government policies under Keir Starmer’s administration—such as rises in the minimum wage and employer National Insurance contributions—as factors that have led to job cuts in the retail sector.

Ashley warned that without addressing these economic pressures, the High Street risks further decline. “These aspects of the hostile business climate can’t be allowed to continue or the high streets will be further devastated,” he stated, adding a direct challenge to the Prime Minister about the government’s role in turning around the fortunes of retailers like Harvey Nichols.

The Prime Minister’s office has yet to respond publicly to Ashley’s letter, and it remains to be seen how the upcoming Budget will address the concerns raised by the retail sector. The debate highlights the ongoing tension between supporting traditional retail spaces and adapting taxation to reflect the evolving landscape of commerce, including the growth of online retail.