Britain needs clear economic plan to drive growth, Asda boss says

By James Davey

LONDON, Aug 28 (Reuters) – Britain needs a clear economic strategy focused on supporting growth rather than holding it back, the boss of supermarket group Asda said on Friday.

Asda’s executive chairman Allan Leighton, who in a five decade career has also chaired Britain’s Co-operative Group and the Royal Mail, said the Labour government that came to power in 2024 had inhibited growth by piling costs on to business, such as higher employer taxes and packaging levies.

He wants that to change under new Prime Minister Andy Burnham and his new finance minister John Healey, who will present his first budget on October 28.

“We haven’t had an economic plan for growth, we had an economic plan that inhibited growth, so just changing that would make a big difference,” Leighton told reporters after Asda updated on third quarter trading.

“If on top of that they could introduce some things that actually encourages businesses to go even faster for growth that would be even better.”

BACKING FOR FINANCE MINISTER HEALEY

Leighton backed Healey: “He is a very sensible guy, I think he’ll probably be quite a good chancellor.”

On Thursday, the Financial Times reported that Mike Ashley, the retail billionaire behind Frasers Group, had lambasted Burnham’s proposals to revive British shops as “delusional” and “populist”, and warned that the country’s high streets would be “further devastated” unless taxes were cut.

However, Healey, like his predecessor Rachel Reeves, has little, if any, room for tax cuts given the pressure on the public finances.

Leighton also said that England’s ongoing drought meant more food inflation was inevitable.

“In produce there is bound to be some because of the production capacity and capability at this moment in time,” he said.

However, he said Asda continued to inflate “behind the rest of the market.”

(Reporting by James Davey, Editing by Paul Sandle)