The chief of M&S has laid out what he wants from the autumn budget, including no more taxes that hit consumers and action on business rates.
Retail had already been hit with an “alphabet soup of taxes and regulations” over the past year, said Stuart Machin. “New packaging taxes – extended producer responsibility, or EPR – cost M&S almost £40m a year.
“The drinks deposit return scheme – another £30m to set up. Higher National Insurance contributions have been catastrophic, costing us an extra £60m and leading to almost 100,000 lost jobs across the economy.
“And I can’t be the only one who doesn’t understand the Transmission Network Use of System tariff, but it’s sending our energy bills through the roof.”
Spelling out his demands for Chancellor Rachel Reeves in a blog on M&S’s website, Machin went on: “So what do I hope to see in the budget? First, no more taxes that hit consumers and the everyday economy. I don’t know what planet Treasury bureaucrats are on when they propose increasing VAT, a regressive tax that would hit working families and stoke inflation.
“Second, action on business rates. Shops need to be exempted from higher charges so they can remain anchors on high streets. Ministers thankfully seem to be moving on this point.”
Reeves is under pressure from retail over plans for a business rates surcharge on the largest properties to pay for a rates discount for smaller properties in retail, hospitality and leisure. Calls have been growing in recent days from the convenience sector – including the Co-op – for small shops to be given the maximum discount possible, while major retailers have been demanding exemption from the surtax that is intended to subsidise it.
Along with exemption from the surcharge, Machin’s wish list included “accelerating the EU reset and delivering the agrifood deal that will rip up red tape and reduce costs pressures on the weekly shop”.
“It baffles me that even when all sides have agreed a deal, it still takes Whitehall years to execute.”
Machin made a similar call at the Northern Ireland Food & Drink Association’s annual dinner in Belfast on Thursday, urging the UK and EU to ”speed up” negotiations.
Machin’s blog also demanded backing for farmers, including a target for the proportion of British-produced food eaten in Britain, reiterating a call M&S made last month.
“Fifth, getting young people into work,” Machin went on. “The Jobs Foundation has sensibly proposed National Insurance holidays for businesses helping the long-term unemployed into roles. We’ve supported over 12,000 young people into work through our Marks & Start partnership with the Kings Trust – we could do so much more with public investment.
“The Chancellor has two paths ahead of her. More of the same: plugging fiscal holes with tax rises, stoking inflation and suppressing demand. Or change course: spend less, borrow less, tax less, regulate less, reduce inflation and enable growth.”
Machin’s blog comes after he met Reeves at an M&S store last week, as reported by The Grocer.
“She took time to speak with customers and colleagues, displaying the sort of curiosity and genuine interest that I’ve come to see as characteristic of her approach,” said Machin. “And during a huddle with our store team, she made a promise: more of their payslip would end up in their pockets, instead of going on energy bills or rising rents.
“That’s a welcome focus. Because families who shop with us are worried about the budget. Almost two thirds believe it will make them worse off, and more than half think they will be taxed more and pay more for goods, with no improvement in public services to show for it.”
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