M&S boss calls tax rises ‘the easy way out’ ahead of budget

M&S CEO Stuart Machin has accused chancellor Rachel Reeves of “taking the easy way out” amid reports she is considering a slew of tax increases in the budget.

In an open letter written in The Times, Machin stated that he hoped reports of an increase in employer national insurance contributions among other things were “exaggerations”.

He also stated that the “ultimate test” would be on the Government’s delivery of its manifesto ambitions.

Machin said: “This Government was elected to promote a growth agenda, but what I’ve seen and heard so far doesn’t add up to a coherent growth narrative. “It might improve the public finances in the short term, but it makes economic recovery harder and hits our customers and colleagues still struggling with the cost of living. Labour’s manifesto contained lots of great pledges, but I worry the reality of government is watering them down.

“The Government is absolutely right that unlocking investment means stripping away red tape, which requires more than just unclogging the planning system. As each decision comes before them on a new piece of regulation or a proposed development, political and activist pressure will mount – but they must stick to their word. Businesses are littered with regulatory burdens that add cost and complexity for little public benefit.”

In its most recent results M&S saw its profit-before-tax rise to £672.5m, up from £475.7m, for the year ended 30 March 2024.

Alongside this, the company’s profit before tax and adjusting items was £716.4m, up from £453.3m.

The news comes amid further reports that the chancellor is considering higher taxes on the likes of Amazon in a bid to support the UK’s struggling high streets.