M&S Chief Executive Stuart Machin has expressed significant concerns regarding the government’s intention to raise business taxes in the upcoming Budget.
Machin conveyed his apprehensions through LinkedIn, asserting that the proposed tax hikes represent a “short-term, easy fix” that would impede economic recovery. The M&S leader urged Chancellor Rachel Reeves to reconsider these measures, stressing that higher taxes on businesses could adversely affect UK consumers.
Machin, advocating for a more sustainable approach, called upon the government to fulfil its “bold ambitions” to reform business rates. He also suggested granting businesses more control over their apprenticeship levy funds, indicating that these steps would be more favourable for economic progress.
The CEO argued that merely increasing taxes is not the difficult decision it might seem. He stated, “The much harder decisions are around fundamentally re-engineering the British economy, tackling the issues that have held us back for decades.” In his perspective, reformation is key rather than short-sighted fiscal changes.
Highlighting National Insurance as an example, Machin described it as a “tax on workers” and expressed concern about its impact, particularly on larger employers and smaller suppliers. He warned that any increase would complicate the hiring abilities of businesses, particularly if combined with other tax rises like business rates or fuel duty.
Drawing parallels to his efforts in revitalising M&S, Machin noted that opting for short-term profit through price hikes would have been detrimental. He believes such strategies do not address the core challenges, a sentiment he applies to the current government’s fiscal approach.
The British Retail Consortium (BRC) had earlier addressed the Labour government with similar worries, suggesting a reduction in business rates to support the UK retail sector. Their message was co-signed by major supermarket chains, indicating a widespread concern within the industry.
Machin’s remarks reflect a broader sentiment within the business community, advocating for strategic economic reforms over superficial tax increases.
