Currys boss Baldock: ‘The biggest inflationary pressures are coming from the government’

Speaking on the day Currys upgraded its post-Christmas profits, Baldock called on chancellor Jeremy Hunt to help the “overburdened” retail sector, and accused the government of being the single biggest driver of “inflationary pressures”. 

Baldock said government-driven increases in the National Living Wage, business rates and new proposed changes to the Waste Electrical and Electronic Equipment (WEEE) recycling scheme were evidence of government “meddling” which will ultimately be “counterproductive” to growth.

He said that Currys has hiked frontline staff pay by 14% in the last 12 months and, while he believes “strong businesses will be able to cope” with the added costs, the wider industry could suffer. 

“I think, speaking for retail, the biggest inflationary pressures are coming from the government with the ill-judged proposed rates hikes and the ill-judged recycling proposals, both of which will be counterproductive and will fuel inflation at the same time as reducing jobs and investment in the UK’s largest private sector employer.

“The ship may have sailed on minimum wage, but there’s still time for Jeremy Hunt to change his mind on business rates and on these misjudged recycling proposals, and we urge him to do so.”

‘Misjudged meddling’ 

Proposed government changes to the WEEE scheme, which would force large electrical retailers to offer free drop-off points and collect unwanted big-ticket items when delivering a replacement, are due to be introduced in 2026.

“The government stepping in and meddling with pricing decisions best left to consumers and retailers to sort out is going to be counterproductive,” Baldock said.

“It’s going to punish [retailers] like us who do the most recycling, at the same time allowing some online-only retailers and kitchen retailers to get off scot-free.”

He suggested a “level playing field” in which tech and electrical retailers sign up to commit to agreed recycling targets and face penalties if they are not met. 

“We’re talking to the Department for Environment, Food and Rural Affairs (DEFRA) about this and we’re making our voice heard. We hope we can get them to change their minds on these misjudged proposals.”