M&S boss says Government must ‘act now’ as Budget risks shrinking UK retail

Stuart Machin, writing in the Sunday Times, called on Chancellor Rachel Reeves to ‘act now’ and make changes to her tax plans.

A Marks & Spencer stores in London's Oxford Street — The boss of Marks & Spencer has warned that the Government’s Budget policies could shrink the UK’s retail sector, squeeze jobs and slow wage growth (Jonathan Brady/PA)

The boss of Marks & Spencer has warned that the Government’s Budget policies could shrink the UK’s retail sector, squeeze jobs and slow wage growth.

Stuart Machin, writing in the Sunday Times, said the industry is being “raided like a piggy bank” and called on Chancellor Rachel Reeves to make changes to her tax plans.

“The blunt truth is, left how it is, the Budget means UK retail will get smaller,” Mr Machin wrote.

“At M&S we are growing, but others are not and there is no doubt that there will be fewer jobs, fewer shops, and slower wage growth across the sector as a whole.”

“Retail is being raided like a piggy bank and it’s unacceptable,” the chief executive said.

His remarks add to a slew of warnings from other retailers and businesses that they will be squeezed by higher taxes and employment costs.

Last week, car dealership Vertu Motors blamed Budget cost increases for job cuts and said it has been forced to shut most of its showrooms on Sundays as part of efforts to offset the impact.

M&S chief executive Stuart Machin criticised ‘ill-thought-through decision-making’ in the autumn Budget (M&S/PA)

Mr Machin, who has been the chief executive of M&S since 2022, criticised “ill-thought-through decision-making” in the autumn Budget.

“The Employment Rights Bill means we would have to say no to a colleague usually working weekend hours who requests more shifts, and the change to the national insurance contributions (NICs) threshold will hit part-time workers hardest,” he said.

The retail boss nonetheless praised “commendable” announcements from Ms Reeves in recent weeks, including a “focus on long-term planning” and “good ideas to free up investment in infrastructure”.

The Government has consistently defended the Budget measures as necessary to plug a “black hole” in the country’s finances and invest in different industries to get the economy growing.

It has also increased employment allowances, which means some smaller firms will be exempt from paying NICs.

Mr Machin said he is calling on the Chancellor to “get the balance right” by making a number of key changes to her policy plans, including phasing the decrease of the NIC threshold over two years to help retailers manage the impact.