M&S chief executive Stuart Machin has issued a warning against the government’s consideration of raising business taxes in the upcoming October Budget, describing it as a “short-term, easy fix” that will hinder economic recovery.
Machin communicated his concerns via LinkedIn, addressing Chancellor Rachel Reeves directly. He expressed that increasing taxes is a simplistic approach that neglects the longstanding issues affecting the British economy. Moreover, he urged the government to enhance business flexibility by reforming business rates and allowing companies more control over their apprenticeship levy funds. “The Budget is the moment to put this right,” Machin asserted.
Further emphasising his point, Machin criticised National Insurance as a “tax with no link to profit,” disproportionately affecting larger employers and their smaller suppliers. He underscored his worry that heightened taxes could deter hiring and exacerbate the existing economic challenges, particularly for retailers.
Drawing from personal experience, Machin compared the government’s potential decision to his own strategies at M&S, where he opted not to pursue short-term financial gains at the expense of long-term stability. He remarked that increasing these taxes would ease immediate fiscal pressures but would ultimately make economic recovery more challenging, especially for those already struggling with the cost of living.
The British Retail Consortium (BRC) has also intervened, having recently sent an open letter to the Labour government. This letter, endorsed by the UK’s six largest supermarkets, calls for reduced business rates to foster support for businesses throughout the country.
Machin’s statements highlight a growing concern among industry leaders about the impact of higher taxes on economic recovery and the wellbeing of consumers and businesses alike.
