M&S boss says retailers being ‘raided like piggy banks’
Marks & Spencer’s boss said UK retailers are being searched “like a pig’s bank” as the industry faces rising taxes.
Written in the Sunday TimesStuart Machin said retailers face a series of headwinds, including the company’s National Insurance Contributions (NICs) and higher packaging taxes.
He called on the government to make many changes, including the changes in the NIC as time went by.
A Treasury spokesman said the measures proposed in the budget last year were designed to provide stability and create growth conditions for businesses.
Mr Machin said many of the budget announcements were “commendable”, such as focusing on long-term planning and attempts to promote infrastructure investment.
But he added that if the government wants to increase growth quickly, “reducing the burden on the budget to load into the retail industry” should be a priority.
exist October’s budget, The government has increased the national insurance rate (NI) paid by employers from April and has also lowered employers to the £5,000 threshold at a price of £9,100. April will also see an increase in national living wages.
The government defends its tax increases to avoid cutting public services, the rise in minimum wages, and a greater increase in young workers and apprentices, and is welcomed by trade unions.
The Treasury also said that more than half of employers will see cuts or no changes in their national insurance bills due to exemptions to smaller businesses.
But these changes have attracted criticism from businesses, and in November, M&S was one of the signatories A letter sent to the Prime Minister by major retailers Asked her to rethink some measures.
Last year, M&S reported an increase in annual profit to £672 million for the 12 months to March. In his article, Mr Machin said that M&S is “growing, but not others, and there is no doubt that jobs across the industry will be reduced, with slower growth in stores and lower wages”.
In addition to changing employment rights and the increase in employer NICs, Mr Machin also criticized the new packaging tax that will expire in October.
The extended producer responsibility (EPR) measures are designed to enable manufacturers to pay for the full net cost of managing and recycling packaging waste, thus aiming to reduce unsustainable packaging.
In a letter to the prime minister in November, the British retail consortium estimated that the measure would cost the industry £20 billion.
Mr Machin said the EPR “will provide retailers with 20 times the current amount, with £20 billion directly using it as a general tax without recycling”.
“It is unacceptable that retail industry is raided like a pig bank.”
He called on the government to add two years to the NIC’s schedule – Reverberate the phone call of the next boss Lord Wolfson – Give retailers “breathing space”.
Mr Machin also said EPR fees should be delayed and the government should rethink its approach to interest rates on its business.
A Treasury spokesman said: “We provided a former parliamentary budget to wipe the slabs and provide the needs needed to stabilize the business, laying the foundation for economic growth.
“In addition to limiting corporate taxes during parliamentary period, we will permanently lower the commercial tax rate on high street retail, hospitality and leisure in 2026”.
