Asda Chair Slams Government as 'More and More Difficult' for Business Operations
Allan Leighton, the chair of supermarket giant Asda, has publicly criticized the current government, stating it has become "more and more difficult" for businesses to deal with compared to previous administrations. Speaking at the Retail Week x The Grocer conference on Tuesday, Leighton emphasized that political and governmental impacts on business have significantly increased over time.
Contrast with Previous Labour Government
Leighton, who previously led Asda in the 1990s before returning in 2024 after roles at The Co-op, Pandora, and Brewdog, contrasted the current environment with the Tony Blair-led Labour government. He noted that during his first period at Asda, the Labour Party went "out of their way to try to engage with business," describing it as "pretty business-friendly." In contrast, he characterized the current Labour government's approach as "less helpful" for business growth.
"Politics and government have a much bigger impact on what happens today than they did," Leighton said, according to reports from The Telegraph. "Over a period of time, that's got, I think, more and more difficult." Despite these challenges, he added, "In the end, you have to deal with it, which is why I don't complain about it."
Business Obstacles and Economic Context
Leighton argued that businesses are increasingly facing growth obstacles "not of their own making," pointing to government policies as a primary concern. This criticism comes despite Chancellor Rachel Reeves' claims in the spring statement that the UK economy "is growing." Retailers have pushed back, asserting that Labour's decisions are hampering their expansion capabilities.
Asda, which was acquired by US retailer Walmart for £6.7 billion in 1999 and later sold to the billionaire Issa brothers and British equity firm TDR Capital in 2021, with Walmart retaining an equity stake and board seat, serves as a case study in navigating changing political landscapes.
Retail Sector Alarms Over Youth Unemployment
The retail and hospitality sectors have raised alarms about government policies undermining growth ambitions. Leaders cite business rates and workers' rights reforms as making hiring more difficult, particularly as rising employment costs force adaptations. Trade bodies warn these reforms could lead to reduced hiring.
Youth unemployment is a growing concern, with nearly one million young people not in education, employment, or training. The boss of bakery chain Greggs expressed worry about youth joblessness, emphasizing that getting young people into work is "key to the success of a future growing economy."
Leighton's comments highlight a broader tension between government policy and business needs, suggesting that while businesses must adapt, the current political environment poses significant challenges to growth and employment in the retail sector.
