M&S CEO Stuart Machin criticises government’s proposed tax increases.
- Machin labels the potential tax hikes as ‘the easy way out’ for public finances.
- Concerns raised over the impact on economic recovery and cost of living.
- Calls for government to adhere to growth-friendly policies from Labour’s manifesto.
- Machin echoes concerns of other industry leaders about business rate reforms.
In a pointed critique, Stuart Machin, CEO of M&S, has voiced strong opposition to potential increases in national insurance for employers under consideration by Chancellor Rachel Reeves. He describes such measures as the government opting for ‘the easy way out,’ suggesting they offer only a short-term fix for public finances. According to Machin, while these increases might temporarily bolster fiscal resources, they risk undermining economic recovery efforts and exacerbating financial pressures on both customers and employees already grappling with the cost of living crisis.
Machin expressed skepticism about the extent to which the Labour government’s growth-oriented manifesto pledges would be realised. He suggests that the promises of overhauling business rates and providing greater flexibility in apprenticeship levy funds are crucial tests for the government’s commitment to their declared growth strategy. ‘Labour’s manifesto contained promises that businesses were hopeful about, but I’m concerned these are being diluted once in power,’ Machin noted, expressing concern about the waning of initial ambitions.
The M&S chief emphasised the necessity of cutting through regulatory red tape to truly unlock investment, beyond just clearing the planning bottlenecks. He acknowledged the political and activist pressures that new regulation proposals could spark, but insisted that steadfastness to these promises was essential. ‘Businesses are burdened with regulatory constraints that inflate costs and complexity with minimal public advantage,’ Machin remarked, delineating frustration shared across the corporate landscape.
Machin’s sentiments are echoed by Simon Roberts, CEO of Sainsbury’s, who has also urged the government to deliver on comprehensive reforms to business rates, underscoring that his company pays nearly as much in property taxes as it earns in operating profit. These criticisms highlight a broader concern within the retail sector regarding the government’s fiscal approach as industry leaders urge Chancellor Reeves to align with her growth-oriented agenda.
The discourse by industry leaders underscores the pressing need for government adherence to growth-focused economic reform commitments.
