Political ignorance of business is stunting UK growth, warns Iceland boss

A lack of commercial understanding inside government is making it harder for companies to operate and is actively holding back economic growth, according to the boss of Iceland.

Richard Walker, executive chairman of the frozen food retailer and a newly appointed Labour peer, has warned that too many politicians fail to grasp how businesses actually function — particularly those operating on tight margins and employing thousands of people across the country.

“I’ve met a lot of MPs over the years,” Walker said. “Very few understand how a business actually runs. There’s still a mindset in parts of government that treats profit like a dirty word, when profit is precisely what allows businesses to invest, employ people and pay tax.”

Walker argued that political suspicion of profit misunderstands how sustainable growth is created. For large employers such as Iceland — which operates in every region of the UK — margins are slim and policy decisions can have immediate, real-world consequences.