M&S chief urges chancellor to reconsider tax policy ahead of Budget
An article on Marks and Spencer’s website also renewed calls for ministers to avoid tax measures that Machin said ‘hit consumers and the everyday economy’
Register to get 1 more free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Marks and Spencer chief executive Stuart Machin has urged chancellor Rachel Reeves to “change course” on economic policy ahead of next month’s Budget, warning that persistent tax rises risk trapping the UK in a “doom loop” of weak growth.
Writing in The Times, Machin described the government’s fiscal approach as “catastrophic” and criticised what he called an “alphabet soup of taxes and regulations” affecting retailers.
He argued that the government should prioritise cutting public spending rather than introducing new levies.
Machin wrote: “The chancellor has two paths ahead of her. More of the same: plugging fiscal holes with tax rises, stoking inflation and suppressing demand. Or change course: spend less, borrow less, tax less, regulate less, reduce inflation and enable growth.”
An article on Marks and Spencer’s website also renewed calls for ministers to avoid tax measures that Machin said “hit consumers and the everyday economy”. He cited the proposed £25bn rise in national insurance as particularly damaging and urged Labour to reconsider changes to inheritance tax, saying the government should be “backing our farmers”.
He added: “Ministers must prioritise and spend within their means, instead of coming back to businesses or the British public for more. There are clear options for reductions in spending, even if they present political challenges.”
According to the supermarket chief, Marks and Spencer’s annual tax bill had risen around £650m, which he claimed was contributing to higher prices for shoppers.
In light of this, he warned that additional taxes, such as a potential increase in VAT, would “heap pressure on the price of the weekly shop for families across the country”.
His comments come amid wider concern in the retail sector about the impact of tax and regulation. Earlier this month, reports suggested that retailers would avoid the top business rates band in the forthcoming Budget, while figures from the British Retail Consortium (BRC) showed that retail spending slowed in September amid uncertainty over fiscal policy.
