M&S CEO criticizes Labour’s budget as a ‘major tax grab’

Machin stated the budget offered “a whole lot of nothing” and will result in tax hikes for the company. He specifically pointed to business rates, noting that despite seemingly positive headlines, the changes will add an additional £10 million to M&S’s bill. He added, “If you look at the last three budgets, I can’t think of another time like it. It’s one of the biggest tax grabs in history that I have seen.”

The company has absorbed approximately £35 million in additional costs over the past six months, attributed to increased packaging taxes, pay and national insurance costs, and disruptions stemming from the Middle East. M&S is also proceeding cautiously with recruitment due to rising employment costs and uncertain consumer spending.

The announcement came alongside the release of M&S’s half-year results, which showed profits more than doubled to £403.2 million for the 26 weeks ending September 26, compared to £184.1 million a year prior. While the food business performed strongly, exceeding expectations, Machin acknowledged that fashion, home, and beauty results “fell short of their potential,” partly due to lingering effects from a cyber attack that disrupted online sales and logistics for roughly six weeks last year.

Sales increased by 16.2% to £9.25 billion for the half-year, with food sales up 13.9% and fashion, home, and beauty sales rising 17.5%.