Iceland Chairman Richard Walker Talks 'Bold' UK Budget

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Across the shows: 19 speakers in other episodes, 15 bullish and 3 bearish calls, past 30 days

• Richard Walker · Iceland FoodsBearish

  Online giants like Amazon get a free ride on business rates; they should be taxed.

  Walker argues the UK's business rates system is an outdated Victorian tax on bricks and mortar. Iceland is one of the largest taxpayers in the UK even though many bigger businesses pay less. He says online giants should pay their fair share and that the playing field should be level, not a free piggyback for Amazon. He speaks as one of the largest online retailers in the UK, so Iceland competes with Amazon. The view is about tax policy, so the bearish stance reflects the expected hit to Amazon's UK tax position rather than a specific earnings call.

  “So let's start taxing the online behemoths and their fair share. And I'm saying that as one of the largest online retailers in The UK as well. I just want the playing field to be level and not for the likes of Amazon to be getting a free piggyback.”at 8:05

Europe's economy

• Richard Walker · Iceland Foods

  UK budget should be bold, not do-no-harm; growth and productivity matter more than handouts.

  Walker says the UK is the best of a bad bunch on growth across Europe, but that long-term sustained growth and productivity gains are still needed. He argues a growing, vibrant economy will do more to cut poverty than any handout or subsidy, so a do-no-harm budget is the wrong approach. He wants three things from the budget: make work pay and cut welfare costs that are mathematically unsustainable, make hiring cheaper by cutting employment costs such as National Insurance rather than the minimum wage, and reward investment through tax breaks for productivity, training and technology.

  “A growing vibrant economy will do more to alleviate poverty than any government handout or subsidy ever will. And that's why a do no harm budget for me is the wrong approach. I think it's time to be bold.”at 4:41

• Richard Walker · Iceland Foods

  UK long bond yields are the highest in the OECD due to welfare and state pension spending.

  Walker says the UK's long-term bond yields are the highest in the OECD, and he attributes this directly to spending on the state pension and welfare. He worries the government will start spending savings from the triple lock before they appear, and that it may take savings to fund adult social care. He argues that restoring fiscal prudence and credibility is needed to bring yields down, that bond markets are watching closely, and that the UK currently spends about £110bn a year on interest payments, which he calls ridiculous.

  “This is about bringing back fiscal prudence and credibility as a nation to help our long term bond yields, which are the highest in the OECD. And that's precisely because of our spending on state pension and our spending on welfare.”at 11:44

Consumer & retail

• Richard Walker · Iceland Foods

  Government must wholesale reform business rates to revive the high street.

  Walker says the high street is the backbone of UK society and that reviving it is possible and should be done. Retail employment, culture and a sense of place all depend on it. He argues that business rates, a Victorian system that falls heavily on bricks-and-mortar retailers, need wholesale reform rather than tinkering at the edges. He questions whether the government has the guts to do it.

  “Government can do something, to be honest, it's whether they've got the guts to do that. And it's... it has to be wholesale reform, not just tinkering around the edges, of our business rate taxation in The UK.”at 7:46