Mike Ashley warns government of “disastrous consequences” for jobs if business rates are not reformed

Frasers Group chief, Mike Ashley has reportedly warned prime minister Boris Johnson of “disastrous consequences” for jobs if business rates are not reformed.

Ashley said the government must take action in response to “crippling” business rates, The Times reported.

In a letter to prime minister Boris Johnson, Mike Ashley and Fraser Group's chief financial officer Chris Wootton, wrote: “We believe that the exchequer is putting the jobs of a significant percentage of the UK workforce at risk.

“I write to you as we at Frasers Group wish to raise directly with you the critical issue of business rates again. I am sure that you will be aware that our nation's high streets are in a worsening crisis, this is not new news."

"As you know Frasers Group has long petitioned the government to change the business rates environment, which we believe is raising unfair and uneconomic revenue from businesses. In doing so, we believe that the exchequer is putting the jobs of a significant percentage of the UK workforce at risk.”

The letter outlined the thousands of job cuts announced by retailers such as John Lewis and Marks & Spencer in recent weeks.

“Millions of people rely on the high street for their livelihoods. We do not believe that delaying urgently needed and overdue reform in this area is in the interests of the government, business, or the public at large."

"In our opinion the consequences of failing to act right now will be disastrous, Even as we write highly successful retailers such as John Lewis are significantly scaling back on their high street presence, and Marks & Spencer, a stalwart of the UK high street, have just announced 7,000 redundancies, if that does not make you sit up and take notice we are not sure what will.

"Other businesses are entering insolvency from which they cannot feasibly return due to the crippling impact of business rates. Without change these businesses will simply disappear."

Ashley and Wootton have requested a ten-minute meeting or call with prime minister Boris Johnson to discuss the issue of business rates.

“We believe the government can and should act now. We wish therefore to meet or have a call with you, at a time and place of your choosing, at any time of the day or night, to discuss the issue of business rates and potential solutions, for just 10 minutes. We believe this would be an excellent use of all of our time and that we could achieve much together on this issue.”

The Treasury has released a “call for evidence” over a review of business rates and introduced a 12-month rates holiday for retail, leisure and hospitality properties until the end of March 2021.