Mike Ashley tells MPs: 'The internet is killing the high street'

Retail tycoon compared the high street to a body at the bottom of a swimming pool

Sports Direct founder Mike Ashley has called for a 20 per cent tax on internet retailers as he told MPs that online shopping is “killing” the British high street.

Mr Ashley told politicians on the Housing, Communities and Local Government committee that most high streets are beyond help.

“The mainstream high streets are already dead. They can’t survive, the patient is dead,” he said, comparing the traditional town centre to a dead body at the bottom of a swimming pool.

“Now what we’re talking about is can we save the vast minority?”

Continuing with his mortality metaphor, the Newcastle United owner said the only way to resuscitate struggling retail companies was to give them a “massive electric shock”, in the form of a tax on online players.

He called for a 20 per cent sales tax on web purchases, to be applied to companies making more than 20 per cent of their sales online, which he said would encourage retailers to focus on their bricks and mortar stores.

“The internet is killing the high street. If you want to save the high street you have to address that,” he said. “You have to tax the web boys 20 per cent.”

The retail tycoon said this would have a negative impact on his own company, but said it was necessary “for the good of the high street”.

Mr Ashley bought House of Fraser out of administration earlier this year, and has vowed to save 80 per cent of the company’s stores. He also holds a significant stake in Debenhams and recently took over Evans Cycles.

The committee asked him whether he could keep all of the House of Fraser branches open, to which Mr Ashley replied: “What person could keep 59 stores open - beside God? It’s impossible, it can’t be done.”

He then added: “Before anybody says it, I’m not comparing myself to God.”