Former Asda chairman and M&S boss Lord Stuart Rose has blasted the Labour government’s economic performance as “horrifying” and warned of the consequences for UK business.

Speaking on ITV’s Peston on Wednesday (14 May), Lord Rose said he had “genuinely wished” Labour well after 14 years of Conservative rule, but has since been left disillusioned by what he described as the “worst economic situation” the country has faced since the 1970s.

“We are now nearly one year in, and I am actually quite horrified by what I have seen,” said Rose.

Citing rising national debt, stagnant economic growth, weak business morale and a lack of meaningful investment, the former Asda chairman warned that the UK economy appears directionless.

“I don’t see any clear pathway to a route out at the moment,” he added. His comments come despite recent ONS figures showing a modest 0.7% GDP increase in Q1, exceeding forecasts.

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Growth was driven by stronger consumer spending and a slight rise in business investment, but Rose expressed concern this was not reflective of deeper structural progress.

He also warned that Labour’s proposed reforms to workers’ rights, including the removal of probationary periods and a ban on zero-hour contract, could backfire on businesses already under pressure.

Questioning whether the timing and scale of the changes align with the government’s growth ambitions, Rose added: “These reforms will kick business up the arse,” he said.