Marks & Spencer boss Stuart Machin has accused the government of implementing "one of the biggest tax grabs in history" due to what he described as an "onslaught" of cost increases affecting the retailer. Machin stated that the recent Budget was "a whole lot of nothing" and that the cumulative effect of Labour's policies over the past three years has significantly burdened businesses.
Machin highlighted specific financial pressures, including a £10 million increase in the company's business rates bill for the upcoming year. He also noted that M&S paid £40 million for a new packaging tax from its food margin, which resulted in the company breaking even on food sales for a particular month. While these additional costs have not led to redundancies, Machin indicated that the retailer must remain "mindful of future recruitment costs."
Earlier, Machin had urged the Chancellor to reverse "the mistakes of the last two Budgets" and pointed to rising employer National Insurance contributions as a factor making it more difficult for firms to hire young people. He emphasized the challenging environment for retailers attempting to balance their books, stating that M&S is focused on reducing costs and reinvesting in value.
Despite these criticisms, Marks & Spencer reported a profit rebound to £355.1 million for the 26 weeks ending September 26, a significant recovery from the £3.4 million profit seen last year. This improvement follows a period where the company had to pause online sales for approximately six weeks in 2025 due to a cyberattack. The company has recruited actress Lucy Punch for its Christmas advertising campaign.
Sales in M&S's food division increased by 13.9 percent to £5.1 billion. Machin expressed optimism about the Christmas period, anticipating that customers dining out less and ordering fewer takeaways will benefit the retailer. The company's fashion, home, and beauty business saw sales recover by 17.5 percent to nearly £2 billion, though this figure remains below 2024 levels. Machin acknowledged customer feedback regarding product offerings, particularly requests for more conservative clothing options and sufficient stock of popular items.
He added that the fashion segment is "gaining share in a declining market," citing research that indicates a £1 billion decrease in UK fashion market sales over the past six months compared to two years prior. Machin confirmed improvements in availability and stock flow, along with efforts to broaden the brand's appeal, but conceded that "there is a lot more to do."