Marks & Spencer chief says London is "on life support" as he unveils investment plan

Marks & Spencer CEO Stuart Machin has said that "London is on life support" as he unveiled a plan to invest £12.5 million in stores in the capital creating more than 200 new jobs.

Machin criticised the Government’s decision to scrap tax-free shopping and the “proliferation of tacky candy stores” on Oxford Street as he said London has fallen behind other major cities.

In a letter in the Evening Standard, he said: “The high street which is meant to be the jewel in London’s crown today is a national embarrassment, with a proliferation of tacky candy stores, antisocial behaviour and footfall remaining in the doldrums, 11% down on pre-pandemic levels.

“And the scrapping of tax-free shopping for international visitors only holds London back further. Meanwhile other cities are beginning to thrive again. It pains me to see our great city like this. For too long now it has been on life support.”

Machin's words echo those of Burberry chair Gerry Murphy who challenged Prime Minister Rishi Sunak at the Business Connect conference in London this week, saying that the removal of tax-free shopping for tourists was a "spectacular own goal".

Prime Minister Rishi Sunak at Business Connect

Murphy told the Prime Minister, who was Chancellor at the time the Government removed tax-free shopping: "It is somewhat perverse that on the day that we left the single market, a decision by, I think it was by you as Chancellor, to remove the VAT refund for tourists made the UK the least attractive shopping destination in Europe."

He said that cities such as Milan and Paris had recovered more quickly from the pandemic as they were more attractive locations for tourists continuing to offer tax-free shopping.

Meanwhile at Marks & Spencer, Machin today unveiled plans to boost the economy in the capital with a £12.5 million investment in London stores this year, including a new M&S store in Croydon and an M&S foodhall in Earlsfield.

M&S said the latest plans come after injecting over £10 million into its stores in the capital last year.

The retailer is continuing with its efforts to secure a redevelopment of its Marble Arch store on the corner of London’s Oxford Street. It has proposed the demolish the current art deco building and create a new store, which will also house offices, a cafe and a gym.

Its plans have faced fierce opposition and the retailer is now awaiting the final decision from the Government’s Levelling Up Secretary.