Asda Chairman Slams Labour for Making Business Environment 'More Difficult'
Allan Leighton, the chairman of Asda, has launched a scathing critique of the Labour government, accusing it of constraining British businesses and failing to provide adequate support. Speaking at the Retail Week x The Grocer conference this week, Leighton contrasted the current administration with past governments, which he described as more business-friendly and engaged.
Leighton, who served as Asda's chief executive in the late 1990s and returned as chairman in 2024, stated that Labour used to 'go out of their way to try and engage with business' during his earlier tenure. However, he lamented that the party has now become 'less helpful' and that dealing with the government has grown 'more and more difficult' over time.
Growing Impact of Government Decisions on Companies
Leighton emphasised that political and governmental decisions now have a much larger impact on businesses than in the past, and not in a positive manner. He suggested that companies are increasingly left to manage problems created by those in power, rather than receiving support.
'Politics and government have a much bigger impact on what happens today than they did,' Leighton told the conference. 'I think in that period of time, most of government was pretty business-friendly, and over a period of time that's got, I think, more and more difficult.'
He pointed to a 'lot of constraints today that are not of their own making,' including rising hiring costs from the minimum wage increase in April, higher National Insurance contributions, packaging fees, and escalating energy costs. New workers' rights laws could further burden companies, he warned.
Broader Business Concerns and Economic Warnings
Leighton is the latest supermarket executive to voice concerns about the government's approach to business. Last month, Tesco boss Ashwin Prasad cautioned that Sir Keir Starmer is 'sleepwalking' into a joblessness epidemic. Despite the challenges, Leighton remarked that businesses must simply 'deal with it,' though he refrained from complaining.
In response to Chancellor Rachel Reeves' spring statement, Shevaun Haviland of the British Chambers of Commerce urged the government to accelerate plans to boost the economy and support British businesses. 'The spring statement confirmed that the UK economy is heading in the right direction, but a further acceleration is needed,' Haviland said.
She highlighted concerns such as GDP growth below two percent annually until 2030, rising unemployment, and weak net trade. Haviland also warned that the government must prepare for aftershocks from the Middle East crisis, including supply and price changes for commodities like oil and gas, which could increase uncertainty and inflation.
Asda's Performance and Future Outlook
Asda, Britain's fourth-largest supermarket, has experienced falling year-on-year sales, making it the only major supermarket to do so, according to industry figures. Leighton acknowledged that turning the company around will take time, estimating a three to five-year process.
'I've said from the beginning, this is a three to five years [job]. You do not turn these things around in a short period of time. I'm just looking for signs of progress, and there are signs of progress,' he added. He hinted at appointing a chief executive from within existing staff ranks to lead the recovery.
Leighton's career includes a four-year stint as Asda's chief executive in the late 1990s, followed by roles at Royal Mail, Pandora, and the Co-Operative Group before his return to Asda as chairman in 2024.
