The chief executive of Marks & Spencer (M&S) has described operating under the current government as “like running up a downwards escalator with a rucksack on your back”.
Writing on his LinkedIn account, Stuart Machin appealed to the chancellor to take three steps to help the retail sector in Wednesday’s budget, describing planned increases to business rates as “economically illiterate”.
He argued the industry’s tax burden was unfair at a time when consumer demand continues to be constrained by the effects of the evolving cost of living crisis and that tax rises risked stoking inflation through higher prices at the till.
Mr Machin, who has run M&S since 2022, said: “Government policy makes being an employer of people and running stores – which the same MPs vaunt in their constituencies – really hard.
“Particularly so when the environment we’re operating in remains uncertain and inflation, while easing, is high.
“It’s like running up a downwards escalator with a rucksack on your back.”
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Tax cuts need to be ‘responsible’
He added: “We could have a longer conversation about how the government must do more to understand the importance of the retail sector to the economy (a sector which employs over 3 million people and pays £17bn in taxes by the way) and the need for a fully-fledged Industrial Strategy, but this budget probably isn’t the right time for that.”
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Sir Paul Smith: UK needs tourists back
Among his assertions was the total tax rate for retailers stood at 45.7% compared with just under 40% for FTSE 100 companies as a whole.
He blamed business rates for the retail sector having the “tightest profit margins”.
Image: Stuart Machin. Pic: M&S
Mr Machin said: “Increasing the business rates multiplier by nearly 7% from 1 April – at a time when the government is looking to tackle inflation, retailers are working hard to offer customers the very best value, and people are struggling with the cost of living – is economically illiterate.”
He revealed his wish list just days after scoring a significant legal win over the government.
The High Court ruled last week that the levelling-up secretary, Michael Gove, was wrong to block the company’s plans to demolish one of its flagship London stores.
Mr Machin wrote: “Everyone knows the sad plight of Oxford Street – once the UK’s premier shopping destination – and we are continuing our fight to invest in a new store at Marble Arch, following last week’s successful court judgement.
“We must do everything we can to restore the street to its former glory and get that lost footfall back.”
The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.
Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.
Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.
But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.
Image: Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP
Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.
All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.
Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.
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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”
Image: Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7
But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.
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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.
With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.