M&S chief executive launches scathing attack on Labour's tax policies ahead of Healey Budget

M&S chief executive launches scathing attack on Labour's tax policies ahead of Healey Budget

Marks & Spencer chief executive Stuart Machin has delivered a blistering critique of Labour's economic policies, branding the previous two budgets under former Chancellor Rachel Reeves as 'disasters' just weeks before John Healey presents his first Budget on 28 October.

The intervention from Machin, who took the helm at Britain's iconic retailer in May 2022, comes as the company continues its dramatic turnaround alongside chairman Archie Norman. Together, the duo have successfully steered M&S back into the FTSE 100 in August 2023 after a four-year absence, marking a significant milestone in the company's recovery.

Tax burden threatens retail expansion

Machin's criticism is backed by stark financial figures. The tax measures introduced under Reeves have already added £150 million to M&S's annual operating costs, a substantial burden for a company that currently pays £500 million in taxes each year. The M&S boss warns that these 'crushing' policies threaten to undermine the retailer's ambitious expansion programme across the country.

The company is currently rolling out new stores and M&S Food Halls in key locations, including a landmark Liverpool store that drew attention during Labour's party conference. Another new Food Hall opened in Norcross, close to the working-class stronghold of Blackpool, demonstrating M&S's commitment to serving communities across Britain.

Reeves, who became the first woman to hold the office of Chancellor in its 708-year history when appointed in July 2024, delivered two budgets during her tenure. Her October 2024 budget introduced £40 billion in tax rises, representing the largest tax increase at a UK budget since March 1993. She presented a second budget in November 2025 before being replaced by Healey in July 2026.

Call for growth-focused policies

Machin has urged new Chancellor Healey to 'take the handcuffs off business' and create conditions for genuine economic growth. The M&S chief praised Prime Minister Andy Burnham's message of 'giving hope again' but emphasised that the government now needs to deliver concrete policies to match the rhetoric.

Burnham, who took office on 20 July 2026 after serving as Mayor of Greater Manchester from 2017 to 2026, has pledged to focus on economic renewal. As Britain's first Prime Minister to belong to the Co-operative Party, Burnham faces significant fiscal challenges, with a budget deficit expected to widen by the end of the parliamentary term.

The M&S boss's intervention carries particular weight given both his own track record and that of his chairman. Before joining M&S as Food Managing Director in 2018, Machin spent a decade in Australia with Wesfarmers, serving as COO of Coles supermarkets and CEO of Target department stores. Norman, appointed M&S Chairman in September 2017, is legendary in British retail for transforming Asda in the 1990s, rescuing it from near bankruptcy and leading it to a £6.7 billion sale to Walmart in 1999.

Industry-wide concerns

Machin's attack on government tax policy reflects broader anxiety across British business. The financial services sector has also mobilised, with lobby groups warning Healey against further tax increases on banks. The City has cautioned that additional taxation could trigger an exodus of talent, business and capital from London.

The M&S chief's message will resonate with voters in constituencies across Britain where the retailer maintains a significant presence. His call for the government to unlock growth rather than stifle it with taxation comes at a critical juncture, as Healey prepares his first Budget amid mounting pressure to demonstrate that Labour can deliver economic prosperity.

Norman's unique background, having been the only person to lead an FTSE 100 company whilst serving as an MP (Conservative member for Tunbridge Wells from 1997 to 2005), adds further credibility to the retail pair's intervention on government policy.

Beyond taxation concerns, Machin highlighted frustrations over policy paralysis in other areas. The ongoing delay in approving drilling licences for the Rosebank and Jackdaw North Sea oilfields has angered Norway's Equinor and raised concerns at Shell, which maintains substantial downstream operations in Britain including refineries and fuel supply networks.

The M&S boss also pointed to the government's stalled National Care Service plans, which appear unlikely to materialise before the next Parliament. He noted that creating a care endowment fund through a German-style social market levy, similar to the boldness shown by the Attlee government in establishing the NHS despite post-war debt reaching 250 per cent of national income, seems beyond current policymakers' ambitions.

On infrastructure, whilst Machin welcomed Reeves' support for a third runway at Heathrow before she left office, he noted that tangible progress remains elusive. The alternative proposal backed by hotel entrepreneur Surinder Arora for a shorter runway capable of accommodating narrow-body jets, costing £25 billion rather than the government's £49 billion plan, represents a more commercially viable option that could be delivered by experienced contractors such as Bechtel.

As Britain relies heavily on its position as a global financial and services hub, combined with innovation from companies like DeepMind and Revolut, Machin's message is clear: the country needs world-class transport infrastructure and business-friendly policies, not mounting tax burdens that threaten growth and expansion.