M&S boss says retailers 'raided like a piggy bank'

The UK retail sector is facing increasing tax pressure, with the CEO of Marks & Spencer stating that retailers are being "raided like piggy banks." This statement reflects the retail industry's concerns about current economic policies and a call for the government to take measures to alleviate the burden on the industry, which could further impact consumer spending.

Stuart Machin, writing in *The Sunday Times*, pointed out that retailers are facing a series of headwinds, including an increase in National Insurance Contributions (NICs) payable by businesses and higher packaging taxes. He called on the government to implement several reforms, including phasing in adjustments to National Insurance Contributions to ease the immediate pressure.

Mr. Machin acknowledged that many of the measures outlined in Chancellor Rachel Reeves' speech last month were "laudable," such as the focus on long-term planning and attempts to promote infrastructure investment. However, he added that if the government wants to rapidly promote economic growth, then "alleviating the burden on retail" should be a priority, as a thriving retail sector is crucial for overall economic health.

A Treasury spokesperson stated that measures introduced in last year's budget were designed to provide stability for businesses and create conditions for economic growth. These measures include limiting corporation tax and permanently reducing business rates on the high street for the retail, hospitality, and leisure sectors from 2026, which aims to support these vital industries.

Mr. Machin also criticized a new packaging tax, the Extended Producer Responsibility (EPR) scheme. This scheme aims to make producers bear the full net cost of managing and recycling packaging waste, thereby reducing unsustainable packaging practices. He called on the government to postpone the implementation of EPR fees and reconsider its approach to business rates, suggesting a more collaborative approach. He concluded: "It is unacceptable that retail is being raided like a piggy bank." He urged the government to phase in the increase in National Insurance Contributions over two years, providing retailers with "breathing space" to adjust.