Next warned that sales will slow in the second half as the retailer forecast that the UK economy is set for anaemic growth in the coming years from increased regulation, higher taxes, government spending and declining job opportunities.

The British fashion and homewares retailer, headed by Simon Wolfson, said it first raised concerns about a potential weakening in UK employment two years ago and the situation has not materially improved.

“Since then, vacancies have continued to fall and pay-as-you-earn payroll numbers are now moving backwards,” the retailer said Thursday. “The problem appears to be that employment, particularly at the entry level, faces the triple pressure of rising costs, increasing regulation and displacement through mechanisation and AI.”

Wolfson has been fiercely critical of the Labour government’s handling of the UK economy, previously criticising moves such as the lifting of national insurance contributions, an employers’ payroll tax.

Next made the comments as it forecast that full-price sales growth will slow in the second half as factors that boosted its performance in the first six months, such as favourable weather, are unlikely to continue. It kept its guidance of as much as £1.1 billion (€1.3 billion) in pretax profit this fiscal year unchanged. – Bloomberg