Former Asda and Marks & Spencer boss Lord Stuart Rose has claimed remote working has created a generation who are “not doing proper work”.
Speaking to BBC One’s Panorama, Lord Rose linked working from home to the “general decline” of the UK economy.
The retail veteran delivered a stark assessment of Britain’s working practices since the pandemic. “We have regressed in this country in terms of working practices, productivity and in terms of the country’s wellbeing, I think, by 20 years in the last four,” he told the programme.
This shift to remote work has dramatically transformed Britain’s working landscape since the pandemic. The number of people working from home more than doubled from 4.7 million in late 2019 to 9.9 million in early 2022.
Current official data shows that 28 per cent of the UK workforce now operates on a hybrid basis. A further 13 per cent work entirely remotely, while 44 per cent commute to their workplace.
Office for National Statistics (ONS) data reveals employees value the flexibility, with workers reporting they spend more time on rest, exercise and wellbeing when able to work from home.
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The former boss of Asda has issued a warning for the economy
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However, a growing corporate pushback against remote work is emerging. Major employers including Amazon, Boots and JP Morgan have recently mandated full-time returns to the office.
Company leaders argue that face-to-face interaction is crucial for collaboration. They also maintain that office presence helps employees be more productive. This shift reflects a broader debate about workplace productivity and culture in post-pandemic Britain.
But experts challenge this corporate stance on office returns. Rebecca Florisson, principal analyst at Lancaster University’s Work Foundation, warns that forcing full-time office returns is “unhelpful, and risks undoing some of the gains that have been made in this area since the pandemic”.
She emphasises that remote work is essential for many workers’ employment prospects. “For many workers, remote work is not a nice to have but a key element to their ability to get into and remain in work,” she explains.
Many employees are working from home following the Covid-19 pandemic
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Florisson particularly highlights benefits for disabled workers, noting they report better condition management and maintained or improved productivity when working from home.
The Labour Government is moving to enshrine flexible working rights in law. A new Employment Rights Bill would make hybrid working an option for all employees, unless employers can prove it unreasonable.
Recruitment experts suggest this could benefit businesses. Caroline Gleeson, chief executive of recruitment software firmOccupop, says flexible working policies help attract top talent.
“More talent will be attracted to those positions” offering flexible arrangements, she notes. She adds that working from home can “help to prevent burnout and improve worker retention” while allowing employees to work in “a more comfortable and familiar environment”.
Lord Rose has personally backed his stance with action, requiring Asda’s 5,000 head office staff to work from the office at least three days weekly in 2024. The former retail chief’s strong views on office work are longstanding.
In 2022, he declared himself “an unreconstructed get-back-to-work man”, though acknowledging the need for some flexibility.
“I think people are more productive in the office, but we have to understand some people have particular needs and worries, and concerns and health issues,” he said at the time.
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Supermarkets have came out against the Government’s tax agenda
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Recently, supermarkets have came out against the tax raids announced by Chancellor Rachel Reeves during Labour’s Autumn Budget last year.
Reeves confirmed the rate paid in National Insurance contributions by employers would rise to 15 per cent in April.
In an open letter to the Government, supermarkets, including Sainsbury’s, Asda and Tesco, will cost the retail industry £7.06billion annually.
The group has requested a meeting with Reeves to discuss potential adjustments to the timeline of these changes.
Bank of England governor Andrew Bailey has backed retailers’ concerns, warning of potential employment risks from the Budget changes. “I think there is a risk here that the reduction in employment could be more. Yes, I think that’s a risk,” Bailey said.
Sainsbury’s CEO Simon Roberts warned the tax hikes would lead to higher inflation for shoppers. Asda revealed it would face an additional £100million in costs due to the Budget measures.
The GMB Union, however, strongly criticised the retailers’ warnings, with national officer Nadine Houghton calling them “utterly pathetic”.
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