“It’s recession, not Armageddon” cautions Next chief Wolfson

I´d like to go on a spending spree

Simon Wolfson, the chief executive of high street retailer Next, has said that any tax cuts in next week’s Pre-Budget Report must be sustainable and long-term.

I hope that the cuts are responsible. The tax cuts must be balanced with savings, rather than unfunded,” said Mr Wolfson. He added that the cuts, although welcome, must not be short-term reaction to the current economic climate.

Mr Wolfson’s comments came as called for a realistic assessment of the current economic crisis. He admitted that while things are difficult on the high street, it must be understood that the current situation is “recession, not Armageddon”.

Mr Wolfson said that retail trade appears to have slowed over the past few weeks although this could be because Christmas falls late in the week this year, on a Thursday.

“The timing of Christmas is important. We were expecting sales to come late this year. That might be because it’s just not going to happen but last time Christmas fell on a Thursday sales came late,” he said.

Over the past few days many retail chains have launched money-off promotions. Marks & Spencer yesterday launched a one-day 20pc off sale and department store Debenhams is currently holding a three-day 25pc off everything sale, with a number of its stores closing at midnight. Other retailers offering promotions yesterday included Dorothy Perkins, H&M and New Look.

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