David Ross, owner of the fashion retailer Jigsaw, has called on the government to reverse tax increases and reform business rates, arguing that current policies are detrimental to both consumers and businesses, particularly impacting what he terms 'Middle England'.
Ross urged a shift away from policies that he believes 'hammer Middle England,' stating that many consumers work, pay taxes, and are seeing their pay eroded by frozen tax thresholds and rising bills. He noted that these same individuals often work in retail, meaning that squeezing consumer spending also impacts shops, jobs, and tax revenue.
"The system is currently stacked against retailers and our customers," Ross said, adding that "very often she’s also the person behind the till. Squeeze her and you squeeze the shop, the jobs and the tax take together. Leave working households’ take home pay alone."
Rising labor and energy costs, along with changes to business rates, have placed significant pressure on businesses. Ross specifically called for reforms to business rates, advocating that shops should be exempt from a new top rate intended for warehouses. He also joined other retailers in proposing an increase in the National Insurance threshold for employers to £6,000, arguing that changes to workers' rights should target exploitative practices rather than flexible employment, particularly concerning youth unemployment.
"Youth unemployment is at a ten-year high, don’t let new employment rules kill the Saturday job, where millions of us learned the value of hard work. Target the exploitative contracts and leave the weekend jobs alone," Ross stated. He emphasized that his requests are not a handout but a call for a 'fair deal' for businesses that create jobs and their employees.
These comments come as Jigsaw reported an 18% increase in sales in the six months leading up to July compared to the previous year. The turnaround is attributed to a significant jump in dress sales and the success of a new yellow suit. Concession sales rose by 47% year-on-year, and online sales increased by 21%, with international online sales growing by 48%. The company plans to expand its presence in the U.S. through online marketplaces at Macy's and Nordstrom's this autumn.
Despite a subdued market backdrop and absorbing higher costs, Jigsaw has implemented a 'strategic reset' since 2025. This initiative has focused on strengthening its domestic business, expanding its international reach, and ensuring consistency across its product lines. Tikki Godley, managing Jigsaw's managing director, noted that customers are still choosing Jigsaw despite economic caution.
Jigsaw, founded in 1970, has had to adapt to a competitive retail landscape, especially after struggling during the Covid-19 pandemic, which led to the closure of 30 shops. Jonathan De Mello, founder of JDM Retail, commented that Jigsaw has overcome challenges in the high street and retail markets, with strong growth across all channels, particularly in dress sales. He anticipates positive future prospects as the brand targets international growth.