John Lewis boss: UK economy facing a ‘permacrisis’
The boss of John Lewis has warned that the UK economy is locked in a “permacrisis” as he urged the government not to hike business rates on large retailers. Peter Ruis, the outgoing managing director of the retail giant, said that British businesses are facing a “permacrisis externally [which] isn’t going to go away”. Last [...]
John Lewis's outgoing managing director, Peter Ruis, has warned that the UK economy is currently in a "permacrisis," urging the government to refrain from raising business rates on large retailers. Ruis highlighted that British businesses are facing "external permacrisis" that is not expected to improve. Although he remains optimistic about John Lewis managing external conditions to achieve a strong Christmas period, Ruis emphasized the critical importance of avoiding a potential business rates hike.
He criticized the rumoured tax increase, stating that it would be "terrible" for the high street and warned that it could lead to "closed shops" in city centers and town centers. Ruis called for a reform of the business rates system instead of implementing further hikes. John Lewis, along with other retailers like Tesco, Sainsbury's, and Marks & Spencer, has expressed concerns about the possibility of the highest business rates multiplier being increased.
The current rate stands at 50.8p for stores with a value exceeding £500,000. Ruis emphasized the importance of investing in high streets and employment, citing Labour's 2024 manifesto pledge to replace the business rates regime. As part of its strategy to attract more Gen-Z shoppers, John Lewis is investing in its social media presence, unveiling a new "year-round content studio" that will produce podcasts and social media content.
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