AO World's boss has urged the Chancellor to prioritise cutting welfare spending over imposing further taxes on businesses, labelling the rumoured plans to abolish the two-child benefit cap as "madness".
John Roberts, founder and chief executive of the Bolton electrical retail group, said the Labour Party needed to "man up" and "make some difficult decisions" in Wednesday's Budget.
Speaking to the PA news agency, he described plans to increase welfare spending, including reports about scrapping the two-child benefit cap, as "madness" while the country's public finances require mending.
READ MORE: {}
He encouraged Rachel Reeves to consider measures within the Government's own spending to fill the public finance deficit, rather than burdening businesses with additional taxes.
He asserted: "Business is a force for good in the economy.
"It gets demonised in this Government and all it's seen as is a source of more and more tax that they can then blow on the welfare budget."
Mr Roberts told PA that the Cabinet "couldn't run a bath let alone a business".
"They have no business experience or appreciation in this government," he added.
Most Read
The company's half-year results released on Tuesday revealed that the group incurred approximately £4m in additional costs due to the Government's decision to raise national insurance contributions and the national minimum wage in April.
Nevertheless, AO World posted a 10% increase in pre-tax profits to £18m for the six months ending 30 September, and indicated that full-year profits would reach approximately the upper end of recently revised guidance, between £45m and £50m.
The company attributed the strong performance to the growing appeal of its membership programme.
This week, the group unveiled its new Switch24 service, offering members Apple iPhone 17 handsets from £17 monthly – roughly 44% cheaper than competitors – with the option to exchange them for the latest iPhone model every two years.
Mr Roberts described it as a "first in the 海角视频 market", and a "great example of AO continuing to disrupt and innovate".
Whilst the arrangement is currently exclusive to Apple, he anticipated expanding the offer to other mobile handset manufacturers in future, with AO World also planning to introduce its own SIM deal in spring.
The firm's shares climbed 6% on Tuesday morning following the results and improved profit forecast.
Don’t miss
Peel Hunt analysts described the new Switch24 deal as a "compelling offer for members". They noted the membership programme continues to "drive spend" and has the capacity to double AO's market share.
They stated: "Its membership scheme brings together the group's widening capabilities across finance, mobile and pre-owned.
"It also gives customers access to market-leading pricing and services."