M&S Boss Stuart Machin urges Chancellor to 'back business, not burden it' ahead of Budget
Marks & Spencer Chief Executive Stuart Machin has called on the Government to "back business, not burden it" in next month’s Budget, warning that rising taxes and regulatory pressures are both stifling growth across the retail sector and driving up prices for consumers.
In a statement addressing Chancellor Rachel Reeves, Machin likened the Prime Minister to Britain’s CEO and the Chancellor to its CFO, arguing that the two must now devise a new plan to pull the country out of what he described as an "economic doom loop of ever higher taxes and lower growth".
Machin’s comments come after hosting Chancellor Reeves at the retailer’s Pudsey branch near Leeds last week, where she met with colleagues and customers and pledged to help ensure more of their payslip "ends up in their pockets". While he praised her "curiosity and genuine interest," Machin made clear that Britain’s economic model needs a reset. "Ministers must prioritise and spend within their means, instead of coming back to businesses or the British public for more," he said.
The M&S Boss positioned retail as a key driver of the UK’s recovery, describing it as an "engine of the everyday economy" that creates jobs, draws footfall to high streets and provides affordable, high-qulity essentials for families. But he warned that the sector has been "hit by an alphabet soup of taxes and regulations" in recent years, pushing costs to unsustainable levels.
Budget Burden
Among the biggest burdens, Machin pointed to new packaging taxes under Extended Producer Responsibility (EPR), which cost M&S around £40 million annually, and the Deposit Return Scheme (DRS), which added another £30 million in setup costs. Higher National Insurance Contributions have cost M&S an additional £60 million, a rise that he said has contributed to nearly 100,000 job losses across the economy.
"Retail is now facing £7 billion in additional costs," he said, adding that M&S’s overall tax bill has climbed to roughly £650 million.
What needs to change?
Machin outlined several priorities he hopes to see addressed in Reeves’ first Budget. These include no new taxes on consumers, reform of business rates, faster implementation of post-Brexit trade deals, greater support for UK farmers and new incentives to get young people into work.
He stood firm against the idea that VAT could be increased, calling it "a regressive tax that would hit working families and stoke inflation". On business rates, he argued that shops should be exempted from higher charges so they can continue to serve as "anchors on high streets".
On employment, he backed the Jobs Foundation’s proposal for National Insurance holidays for businesses hiring the long-term unemployed, noting that M&S’s own Marks & Start scheme with The King’s Trust has already helped more than 12,000 young people into work.
Machin’s message to Reeves
"The Chancellor has two paths ahead of her," he said. "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."
Machin’s message to Reeves was clear: the Government can either continue raising taxes to plug fiscal gaps or chart a new course toward growth. The upcoming Budget represents a chance to reset the government’s relationship with business.
"Retail has always been at the heart of our communities," he wrote. "If the Government really wants growth, it has to start by trusting and backing the industries that deliver it every single day."
