
M&S boss Stuart Machin has accused the government of taking “the easy way out” amid reports Chancellor Rachel Reeves is considering raising the national insurance paid by employers.
Machin said he hoped chatter of the tax increases were “exaggerations”, adding: “This Government was elected to promote a growth agenda, but what I’ve seen and heard so far doesn’t add up to a coherent growth narrative.”
In an open letter to The Times, the M&S CEO wrote: “Raising these taxes isn’t the hard decision, it’s the easy way out.
“It might improve the public finances in the short term, but it makes economic recovery harder and hits our customers and colleagues still struggling with the cost of living.
“Labour’s manifesto contained lots of great pledges, but I worry the reality of government is watering them down.
Related Story
“Bold ambitions to “overhaul” business rates and to give firms flexibility over half of their apprenticeship levy funds must not be missing from the Chancellor’s statement.
The M&S boss said the “ultimate test” would be on the Government’s delivery of its manifesto ambitions.
“The Government is absolutely right that unlocking investment means stripping away red tape, which requires more than just unclogging the planning system.
“As each decision comes before them on a new piece of regulation or a proposed development, political and activist pressure will mount – but they must stick to their word.
“Businesses are littered with regulatory burdens that add cost and complexity for little public benefit.”
Machin joins Sainsbury’s boss Simon Roberts in calling out the government ahead of Reeves’ first Autumn Budget as Chancellor.
Roberts said earlier this month that it was critical that the government come through on its promise to fundamentally reform business rates, noting Sainsbury’s pays almost as much tax on its properties as it makes in operating profit.
Click here to sign up to Retail Gazette‘s free daily email newsletter