Marks and Spencer boss warns government tax hikes will hurt jobs and stores across the UK

Marks & Spencer’s chief executive, Stuart Machin, has taken a strong stance against Chancellor Rachel Reeves’ latest tax policies, accusing the government of treating retailers as a financial “piggy bank.”

He warned that the £7 billion tax burden placed on the sector could have severe consequences, including job losses, store closures, and stagnant wage growth.

Impact on Jobs, Shops, and Prices

Machin, who started his career in retail at just 16 and worked his way up to the top of M&S in 2022, expressed deep concerns about the future of the high street.

He believes that without urgent changes to the budget, consumers will face rising grocery prices and declining food quality.

The additional costs imposed on businesses, he argued, will trickle down to households across the UK.

Urging the Government to Rethink Policies

In a strongly worded opinion piece for The Sunday Times, Machin urged the Chancellor to reconsider aspects of the October Budget, particularly the planned increase in employer National Insurance and the minimum wage hike set for April.

While supporting fair wages, he suggested that these changes should be phased in over two years to reduce the financial strain on businesses.

Additional Challenges for Retailers

Beyond tax hikes, Machin also criticized new government proposals on workers’ rights and a controversial packaging levy, which he labeled “nonsensical.”

He warned that these measures would place further pressure on retailers already struggling with rising operational costs.

The Future of UK Retail at Stake

“If the Government wants to invest in the future, then lightening the burden on retail should be a top priority,” Machin wrote.

He emphasized that while M&S is continuing to grow, many other retailers are not, and the overall impact of the new policies could lead to a shrinking retail sector.

Supply Chain Ripple Effect

Machin also highlighted the potential knock-on effects on supply chains, predicting that UK manufacturing and farming could contract as a result.

This, in turn, could drive up import reliance and consumer prices.

His message to the government was clear: rethink the budget, ease the financial pressure on retailers, and ensure the survival of a strong, competitive high street.

This article was published on TDPel Media. Thanks for reading!

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