Mike Ashley has suggested House of Fraser could be merged with Debenhams in a combative appearance before MPs, where he insisted “it’s not my fault the high street is dying”.

The Sports Direct tycoon, who bought House of Fraser for £90 million this year, told parliament’s housing, communities and local government select committee that the High Street will disappear by 2030 if no action is taken.

He floated the idea of a tax on retailers making more than 20 per cent of their sales online, arguing that the levy would level the playing field for bricks and mortar retailers struggling to keep up with online rivals and suggested it would encourage owners of stores such as his Sports Direct firm to keep stores open.

“We have to realise the High Street won't make 2030 - it's not going to be there unless you do something really radical and grab the bull by the horns,” Ashley said.

“I want to make it crystal clear: the mainstream high streets as we think about it today - not the Oxford Streets and the Westfields - are already dead. They can't survive... outside of London it's going to be a ghost town," he added.

In a bullish appearance before MPs, in which he described the High Street as at the bottom of swimming pool and in need of an electric shock, the House of Fraser owner also suggested business rates relief and councils lifting car parking charges could hand struggling retailers a lifeline.

He also hit back at MPs who asked him to guarantee that he would keep 59 House of Fraser stores open, arguing that no one was capable of such a feat “except God”.

He appeared to add fuel to rumours that a tie-up between House of Fraser and Debenhams - in which Sports Direct has a 29.7 per cent stake - could still be on the cards.

“I told them to work together. They should work together,” he said. "It's not House of Fraser's fault, it's not Marks & Spencer's fault, it's not Debenhams's fault the high street is dying; the internet is killing the High Street.”

Amongst a number of key challenges facing traditional retailers, Ashley singled out “prehistoric rents” which had been set years ago, adding that most landlords wanted to “sit down and work something out”.

He concluded: “I’m not Father Christmas - I try to be fair and I try to be balanced.”

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