Harrods managing director Michael Ward has voiced fears that a Corbyn administration would impose money exchange controls to stop cash flowing overseas and that wealthy customers would take fright.

Ward made his comments to The Times, and revealed that Harrods’ profits dipped last year – a shorter accounting year during which the retailer invested in its landmark Knightsbridge store.

Ward said he knew of wealthy individuals shifting money abroad and said: “God forbid if there is a Jeremy Corbyn government. The first thing it would have to do would be to put in exchange controls because the flow of funds out the country would be so great.”

Expectations of a general election have been heightened as the Government battles to push through Brexit. Exchange controls were abolished by Margaret Thatcher’s government in 1979.

Harrods’ pre-tax profits fell 3% to £171.6m in the year to February, when sales edged up from £862.8m to £868.5m.

Over the year Harrods spent £64.1m – 17% more than in the previous year – on enhancing its flagship store. Improvements included an overhauled beauty hall and refurbishing the food halls.

The beauty offer has been extended to devote more space to up and coming brands popular with younger shoppers. Ward said: “For a crumbly old business like Harrods, a third of our beauty customers are millennials.”

He said the in-store work had brought months “of real pain but it will be worth it”.

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