Sunak’s £15bn cost of living package not enough, says Asda boss

theguardian.com:

The government’s £15bn cost of living handout is not enough to help struggling families and only a “drop in the ocean” compared with the pressures consumers are facing, the boss of Asda has said.

Sir Stuart Rose, the chairman of the UK’s third largest supermarket, said he welcomed the one-off payments announced by the chancellor, Rishi Sunak, on Thursday, worth a minimum of £400 for all households and up to £1,200 for the poorest, but said: “There is still going to be continuing pressure and a lot of toughness for people.”

The retail veteran, who previously led Marks & Spencer, Argos and Topshop, said he expected inflationary pressures to last into next year and take some time to gradually diminish, putting a squeeze on household budgets and therefore on retailers’ profits for months to come.

He said Asda was spending £90m on attempting to keep prices low for its shoppers as he agreed with Marks & Spencer boss Steve Rowe’s assessment that life would get tougher for families and retailers in the autumn as heating and lighting bills increased.

Rising essential costs are putting a dampener on retail spending as families put fewer items in their baskets and look for bargains at discounters such as Aldi and Lidl, as they try to keep within household budgets.

“This is not going to suddenly stop,” Rose said. “It is not like the lights suddenly go off [inflation] will decline downwards. I can remember the last time inflation was [like this] and it took nearly eight years to get under control. I’m not saying it is going to take eight years [this time] but it is not going to stop in a year.”

Rose said the inflation problem could not be solved by consumer businesses or government alone but needed both to work together with ministers,