Business leaders have been urged to adapt to recent Budget changes instead of seeking reversals.
- Richard Walker, Iceland’s managing director, emphasises forward-focused strategies amidst Budget challenges.
- Retailers like John Lewis express apprehension over potential cost implications from Budget policies.
- Walker refutes imminent cost concerns, highlighting no current financial impact on businesses.
- Iceland unveils a customer-centric initiative to counter potential future impacts.
Richard Walker, the managing director of Iceland, has called on businesses to cease dwelling on the recent Budget changes and instead focus on adaptation. He stated that the Government is unlikely to reconsider its decisions, urging business leaders to prioritise future planning. “This isn’t a time for businesses to wallow… The Government isn’t going to change its mind,” Walker said. He advises directing attention towards long-term investments, including skills development and industrial strategies.
There has been notable criticism from retailers such as John Lewis, Asda, Morrisons, Lidl, and Marks & Spencer, who have raised alarms about the financial difficulties posed by higher costs. These include increased National Insurance rates, a higher minimum wage, and new packaging fees. Over 80 retail leaders have communicated their worry to Labour’s shadow Chancellor Rachel Reeves, emphasising the potential for an additional £7bn burden on the sector. Consequently, they foresee unavoidable job losses and price hikes.
In contrast, Walker has cast doubt on these projections, pointing out that no increased costs have actually materialised yet. “It’s interesting that retailers are warning over job cuts and price rises when no higher costs are coming because nothing’s changed yet,” he argued. Additionally, he expressed confidence in Iceland’s ability to manage and mitigate any difficulties that may arise.
In response to potential economic pressures, Iceland introduced an interest-free loan scheme aimed at supporting customers. This initiative, known as the Food Club and supported by the non-profit lender Fair For You, allows customers to borrow up to £100 for spending at Iceland or The Food Warehouse, with a repayment plan of £10 per week. This effort underscores Iceland’s commitment to easing potential future impacts on its clientele.
Adapting to inevitable Budget changes is crucial for businesses to ensure resilience and growth.
