According to Iceland's boss, a lack of business understanding within the government is making it difficult for companies to operate and is actively hindering economic growth.
Richard Walker, executive chairman of the frozen food retailer and newly appointed Labor peer, has warned that too many politicians fail to understand how businesses really work – especially those operating on thin margins and employing thousands of people across the country.
“I've met with a lot of lawmakers over the years,” Walker said. “Very few people understand how a business actually runs. There's still a mentality in some parts of the government that treats profit as a dirty word, when profit is what allows businesses to invest, employ people and pay taxes.”
Walker argued that political suspicion of profit misunderstands how sustainable development is created. For large employers like Iceland – which operate in every sector of the UK – margins are thin and policy decisions can have immediate, real-world consequences.
“Without profits, you don't have reinvestment. You don't have job security. And you certainly don't have tax receipts,” he said. “Yet too often policy is designed as if businesses were somehow the enemy rather than the engine.”
While he acknowledged that some politicians are genuinely willing to learn, Walker said that many engage superficially.
“The best ones go to the stores, talk to the employees and understand the ground reality,” he said. “But many people just want the opportunity to be photographed and then disappear.”
Walker's criticism extended beyond individual ministers to what he described as a structural problem in Whitehall, where departments pursue conflicting agendas with little coordination.
“From business rates to energy policy to food regulation, it's a mess,” he said. “Defra is saying one thing about sustainability, the Treasury is saying another thing about taxation, and local councils are all doing their own thing. There is no joint thinking, and businesses are the ones trying to make it work.”
He said this lack of coherence disproportionately harms employers with a national footprint, who must navigate different rules, costs and enforcement approaches depending on postcode.
Walker is due to take his seat in the House of Lords this month, marking a remarkable political change. He and his father, Iceland's founder Sir Malcolm Walker, both previously supported the Conservatives, with Walker donating to the party and for some time appearing on its list of approved candidates.
However, his relations with the Conservatives cooled after disagreements with former Prime Minister Rishi Sunak led to a reassessment of where he felt his voice could be most effective.
“I realized very quickly that I would be useless at toeing the party line,” Walker said. “I say what I really think, which is not always compatible with frontline politics.”
Earlier this year, he gave Sir Keir Starmer's government a six out of ten rating, and urged Labor to prioritize “inclusive, everyday growth” rather than headline-grabbing projects.
Walker said what really matters to businesses and communities is missing out because of the government's obsession with mega-projects.
“This is not about HS2 or a third runway at Heathrow, projects that will probably never happen, certainly not in my lifetime,” he said. “It's about canceled bus routes, crime on the High Street, the loss of civic pride, the litter, the crumbling town hall.”
For Walker, restoring growth means focusing on the fundamentals that impact ordinary businesses and workers every day.
“This is where trust is built,” he said. “Politics of the everyday. Politics of the ordinary. Get it right, and development will happen.”
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.