Next chief executive Lord Simon Wolfson has warned that efforts to revive Britain’s High Streets will fail unless the government makes it easier to repurpose properties and allows consumer demand to shape their future.

Speaking after Next reported a 10.5 per cent increase in pre-tax profit to £569 million for the six months to July, Wolfson said attempts to restore High Streets to their former state were misguided after years of consumers moving towards online shopping.

“If your aim is to get the high street back to where it was, you're barking up the wrong tree,” Wolfson told reporters, arguing that changes in consumer behaviour had permanently altered the role of physical retail.

Wolfson said the government should reduce restrictions preventing properties from being converted between retail, hospitality, residential, office, leisure and healthcare uses. “The most important thing the government could do for British high streets is to let them develop,” he said.

The Next chief executive said councils that had allowed High Streets to evolve had been more successful in maintaining activity than those attempting to preserve traditional retail uses. He argued that government should not decide which businesses occupy individual properties, but should “let the market do its work”.

The comments come as Prime Minister Andy Burnham makes High Street revitalisation a central part of his domestic agenda, with the government planning measures including lower business rates for pubs, clubs and live music venues from April and action against vape shops and betting outlets.

Wolfson said such efforts should focus less on recreating the traditional High Street and more on enabling properties to adapt to changing demand. Next’s UK in-store sales fell 0.4 per cent in the first half, while online sales increased 8 per cent.

The retailer expects spending on the High Street to continue declining gradually as consumers shift more of their purchases online. Wolfson said planning laws, building regulations and environmental, archaeological and biodiversity requirements were among the barriers restricting development.

“Releasing that pent-up demand would do a lot to boost growth,” he said.
Next reported group sales of £3.5 billion for the six months to July, up 9 per cent year on year, while full-price sales increased 7.7 per cent. The company raised its full-year profit before tax guidance by £12 million to £1.255 billion.

Wolfson’s comments come ahead of the 28 October Budget, where he has urged the government to avoid further tax rises that he argues could weaken consumer spending and business investment. Next employs more than 43,000 full-time and part-time staff and operates around 450 stores.

Wolfson’s comments echo concerns from the hospitality sector, where more than 800 businesses have called for changes to the tax burden ahead of the 28 October Budget. The businesses, which include pub groups, restaurant chains, hotels and independent operators, are campaigning for VAT to be cut from 20 per cent to 10 per cent, arguing that higher costs are contributing to closures, job losses and pressure on High Streets.

The hospitality campaign comes as Burnham’s government prepares wider changes affecting High Street businesses, including a 20 per cent reduction in business rates for pubs, clubs and live music venues. Burnham has said there is limited scope for further measures because of the government’s financial position.

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