Next CEO Lord Wolfson Warns of 'Anaemic' UK Economic Growth Amid Strong Half-Year Profits

Next Reports Robust Half-Year Performance

Next PLC, the prominent British retailer, announced a significant uplift in its half-year financial results, with pre-tax profits rising by 13.8% to £515 million for the six months ending July 2025. Group sales also saw a substantial increase of 10.3%, reaching £3.25 billion. This strong performance was partly attributed to 'favourable weather' and 'competitor disruption', including a cyberattack that affected rival retailer Marks & Spencer.

CEO Issues Stark Warning on UK Economic Outlook

Despite the company's impressive interim figures, Lord Simon Wolfson, Chief Executive of Next and a Conservative peer, issued a stark warning regarding the broader economic prospects for the United Kingdom. Speaking on September 18, 2025, Lord Wolfson cautioned that the UK economy faces 'anaemic growth' in the medium to long term.

He articulated several factors he believes are impeding economic progress, stating that 'the medium to long-term outlook for the UK economy does not look favourable'. These include:

• Declining job opportunities
• New regulation that erodes competitiveness
• Government spending commitments that are beyond its means
• A rising tax burden that undermines national productivity

Lord Wolfson specifically highlighted the impact of the 'jobs tax hike', referring to the increase in National Insurance Contributions (NICs) in April, and expressed concerns that the 'well intentioned' Employment Rights Bill could lead to 'unintended consequences of reducing jobs and eliminating earnings potential'.

Employment Concerns and Future Projections

The Next CEO underscored a challenging employment landscape, noting that vacancies within Next have fallen by 35% over the past two years, while job applications have surged by 76%. He warned that entry-level employment, in particular, faces a 'triple pressure of rising costs, increasing regulation, and displacement through mechanisation and AI'.

While maintaining its full-year profit guidance of just over £1 billion, Next expressed caution for the second half of the year. Lord Wolfson indicated that the boosts experienced in the first half are 'unlikely to continue', and he anticipates the UK economy is 'likely to weaken going forward'. The company forecasts a significant slowdown in UK sales growth for the latter half of its financial year, projecting 1.9% growth compared to 7.6% in the first half.