Marks & Spencer CEO urges tax reversal ahead of budget
The boss of Marks & Spencer has urged the chancellor to “take the handcuffs off business” and reverse Rachel Reeves’ tax rises in the upcoming Budget, reports BritPanorama.
Stuart Machin stated that John Healey must correct “the mistakes of the last two Budgets” and “restore hope” if he is to stimulate growth in Britain after a series of “disastrous” decisions impacting businesses.
Writing in the Daily Mail, Machin’s appeal comes just weeks before Healey unveils his first Budget as chancellor, which is scheduled for 28 October under Andy Burnham’s premiership.
He highlighted that policy changes, including a rise in National Insurance contributions and modifications to business rates, have imposed an annual cost of £150 million on M&S, alongside a significant tax burden of around half a billion pounds.
Machin also urged the government to solidify a deal with the EU on food and drink, labelling it a matter of “common sense.”
“I’ve never hidden what I thought of the last two Budgets. They were a disaster. Britain needed a plan for growth and got a pile of new taxes and regulations instead,” he said.
He added, “I know money is tight. I’m not asking the Chancellor to rip up his fiscal rules. But at the very least, he should start unravelling the mistakes of the last two Budgets.”
In his recommendations for Healey’s Budget, Machin condemned Labour’s rise in National Insurance contributions for businesses, asserting it has escalated employment expenses and contributed to job losses and recruitment freezes.
Reeves increased employers’ NICs from 13.8 percent to 15 percent in 2024 and lowered the threshold for employers from £9,100 per year to £5,000. Machin demanded a reversal of the threshold cut, warning that it has forced consumers to bear the costs at retail outlets.
“It hit shops hard, because so many of our jobs are entry-level and part-time, often just a shift or two a week,” he said. “It also hit our suppliers, particularly in farming and food manufacturing, and strict regulations meant most of those costs ended up with retailers.”
Machin also criticized an upcoming Deposit Return Scheme, describing it as “patently ridiculous,” asserting it would increase the price of every bottle or can of drink by 20p unless returned and recycled.
He cautioned that changes to the Employment Rights Act should be made cautiously to avoid prohibiting Saturday jobs by designating them as “low hours contracts.”
A HM Treasury spokesperson responded, stating, “We want Britain’s retailers to thrive, and the Chancellor has been clear that the way to tackle cost pressures in the long term is through growth.” They emphasized that the focus remains on fostering an environment conducive to business investment, expansion, and job creation.
As the Budget approaches, the dialogue surrounding business taxation remains pivotal, reflecting broader concerns about economic recovery and growth in the UK.
