Tax cuts will not solve the challenges facing the British economy, Lord Wolfson has warned.
The chief executive of fashion retailer Next said the inflationary pressures that are eating away at household earnings can only be tackled by increasing the supply of goods and workers.
Aside from helping the poorest in society, he said there is "nothing the Government can do" for the vast majority of families - and that printing money would do little to help the situation.
Lord Wolfson also predicted that the result of a British recession was likely to be a slight decline in earnings rather than mass job losses, due to high levels of employment.
Asked about whether tax cuts were needed to boost the economy, Lord Wolfson would not be drawn on the contest for the next prime minister.
But he told the Telegraph: "There is a supply-side problem - a shortage of goods and services and skills.
"Just printing money isn't going to actually increase the amount of goods in the country.
Help from Government
"So when people talk about help from the Government, I think what is very important is that those people who are the very worst off in society - there's an awful lot the Government can do to make sure that those people are properly provided for, so they can heat their homes and feed themselves.
"But there's nothing that the Government can do for everybody because, at the end of the day, the problem is that there's less fuel, less goods, less services available - and that is what's causing prices to rise.
"Unless you tackle that fundamental problem, printing money isn't going to change that.
"It's going to be some supply-side measures and changes in supply... rather than demand-side measures such as interest rates and fiscal measures."
He urged the Government to boost house building by unblocking the planning system.
And he called on ministers to allow more workers to come from overseas to help ease labour shortages.
Lord Wolfson added: "It's not going to help inflation if we have crops in our fields that no one's prepared to pick."
No 'worrying' signs
Next is not currently seeing any "worrying" signs that customers are struggling with debts, he added, echoing similar remarks from High Street banks.
Lord Wolfson was speaking as Next raised its annual profit forecast after full-price sales rose 5% in the three months to the end of July when compared to a year ago.
The high street stalwart was boosted by the spell of hot weather, which fuelled demand for summer clothing.
Next said there had also been a resurgence in demand for formal wear as more people attended special events such as weddings, many of which were postponed during the pandemic.
In a trading update, the company said second-quarter sales exceeded expectations by £50million, prompting it to raise full-year profit guidance by £10million to £860million.
FTSE 100
The UK's top share index, the FTSE 100, was down three points at 7,444 shortly after opening this morning, following yesterday's two-point gain.
Brent crude futures were 0.71% higher at $94.75 a barrel.
Companies reporting today
- Full-year results: Hargreaves Lansdown
- Half-year results: Deutsche Post, London Stock Exchange, WPP
- Trading update: Pets at Home