M&S chief says spring budget should pause incoming regulation for retail

M&S CEO Stuart Machin has urged the government to pause looming regulation for retail, claiming it risks overwhelming already hard-pressed businesses.

Setting out what he would like to see in the spring budget on Wednesday (15 March), Machin said a raft of new requirements, from a deposit return scheme to restrictions on where food high in fat, sugar or salt (HFSS) can be displayed, risked asking too much at once.

“We would ask for no further legislative burden acting as a drag on business from unnecessary taxes or regulation,” Machin wrote in a blog. “In my 30-year career, I have never known the burden on retail sit as heavy as it does today.

“There needs to be a strategic overview of legislation and its implementation, with a view to pausing new regulations that will add cost to an under-pressure sector.

“This year, as well as ongoing divergence with the EU, we are having to contend with widespread changes like the HFSS location restrictions and various deposit return schemes (DRS) across the UK.

“Defra is also consulting on further initiatives such as restrictions on single-use plastic and new burdensome reporting requirements.

“On many of these policy areas we share the government’s ambition for much-needed change, however, when you put them together, they risk being overwhelming and unproductive – creating an unsustainable ask.”

Read more: Grocery’s spring budget wish list

The Grocer revealed last month the food industry was facing sweeping new mandatory requirements to measure its impact on obesity, supply chain emissions and animal welfare.

A deposit return scheme is due to launch in August this year in Scotland and by 2025 in England, Wales and Northern Ireland.

The industry is also facing new obligations under extended producer responsibility [EPR] plans which, together with DRS, will cost retailers about £4bn, according to the BRC.

Meanwhile, businesses are already grappling with HFSS restrictions, which came into force in October last year.

Machin also echoed BRC recommendations on business rates, saying the multiplier should be reduced to its 1990 level of 35p.

He called on UK government and the EU to do more to break down remaining trade barriers following the agreement last month of the Windsor Framework.

“As we look ahead to Wednesday, we’re looking for a balanced budget for business that helps put UK economy back into the race,” he said.