The chief executive of Marks & Spencer has accused the government of raiding the retail sector “like a piggy bank” with its latest tax policies as businesses face mounting financial pressures.
Stuart Machin highlighted rising National Insurance Contributions (NICs) for businesses and new packaging levies as major burdens on the industry. He called on the government to stagger NIC changes over time and delay the introduction of the controversial packaging levy, warning that these measures risk stifling growth.
“The long-term growth ambitions [of the government] are laudable, but they are at risk of remaining only that unless action is taken to encourage growth today,” he wrote.
In October’s Budget, the government announced an increase in NIC rates for employers from April and lowered the threshold at which firms begin paying them, from £9,100 to £5,000. The National Living Wage will also rise. While unions welcomed the wage increase, businesses have expressed concern over higher costs.
Machin also condemned the government’s extended producer responsibility (EPR) levy, which aims to make producers cover the costs of recycling packaging waste. He warned that the £2bn measure would lead to significantly higher tax bills for retailers, with “no improvement to recycling.”
“Retail is being raided like a piggy bank, and it’s unacceptable,” Machin said, writing in The Sunday Times.
Despite M&S reporting a £672m profit last year, he cautioned that many retailers were struggling and warned of job losses, store closures, and slower wage growth across the sector.
Machin echoed calls from Next boss Lord Wolfson to phase in NIC increases and urged the government to rethink its approach to business rates and packaging levies to give retailers “breathing space.”
A Treasury spokesperson defended the policies, saying: “We delivered a once-in-a-Parliament budget to wipe the slate clean and deliver the stability businesses need, laying the foundations for economic growth.
“In addition to capping corporation tax for the duration of parliament, we’re permanently cutting business rates for retail, hospitality, and leisure on the high street from 2026.”
