Richard Walker, executive chairman of Iceland Foods and a former government cost-of-living czar, has urged the Chancellor to stop overburdening businesses with taxes and regulations. Walker, who previously supported the Conservative party before switching to Labour in 2024, stated that UK retail businesses, particularly grocers, operate on "razor thin margins" and are already stretched by current tax levels and regulatory demands.
Walker, who was appointed a peer and served briefly as a cost-of-living tsar, expressed that while he holds no expectation of reversed National Insurance hikes, his primary request to the Chancellor is for "no more nasty surprises." He emphasized that Britain "cannot tax its way to growth," despite Iceland Foods paying approximately £175 million in tax last year and billions over the past two decades. He advocated for a pro-growth and pro-business environment, a promise he believed Labour was making when he switched allegiance.
Reflecting on the last Budget, Walker described it as "a really tough pill for business to swallow," estimating the cost to Iceland Foods at around £40 million due to increases in National Insurance and the national minimum wage, plus an additional £10 million in packaging costs. He views the cost-of-living crisis as a symptom of a larger problem: a lack of economic growth. Walker stressed the need for the Budget to adopt a longer-term perspective, ensuring that entrepreneurship, investment, and employment are not undermined.
He also expressed irritation at suggestions of supermarkets engaging in "price-gouging," calling it an "old chestnut" and highlighting the intense competitiveness of the grocery industry. Walker cautioned that imposing price caps on such an efficient market could lead to "terrible unintended consequences," such as rationing and negative impacts on farmers and the supply chain. He dismissed the idea of a wealth tax as "not a grown-up serious idea."
Iceland Foods, founded in 1970 by Sir Malcolm Walker and his wife, has grown from a single shop to a major retailer. Richard Walker took over as executive chairman, steering the company away from a potential stock market re-listing after a turbulent period in the early 2000s. The company now operates approximately 1,000 Iceland and Food Warehouse stores, alongside other ventures like the Piccolino restaurant chain. In the year ending March 2025, the group reported a turnover of £4.1 billion and employs 30,000 people.
Iceland Foods has implemented initiatives to support customers facing financial hardship, including interest-free micro-loans for low-income families and a 10% discount for seniors. The company has also introduced over 750 product lines priced at £1 or less. Walker noted the success of an AI-driven "Iceland Lab" opened in Beijing, which generated significant revenue in its initial days.
Richard Walker joined the family business in 2012 after co-founding his own commercial property company. He described his father, Sir Malcolm, as a constant presence in the office, though without formal responsibility. Walker credited his mother's influence and their shared experience climbing Mount Everest for fundraising efforts after her Alzheimer's diagnosis as significant motivators for his involvement in the business and public service.