The M&S CEO Claims Retailers have been “Raided Like a Piggy Bank.”

The CEO of Marks & Spencer, Stuart Machin, has criticized the rising tax burden on UK retailers, describing it as “raiding like a piggy bank.” In an article for the Sunday Times, he highlighted several challenges facing the sector, such as increased National Insurance Contributions (NICs) and higher packaging levies.

Machin called for government reforms, including a gradual increase in NICs over time. A Treasury spokesperson responded, stating that last year’s budget measures were designed to stabilize businesses and promote growth. While Machin acknowledged the government’s efforts in long-term planning and infrastructure investment, he stressed that reducing the tax load on retail should be a priority to spur immediate growth.

The government’s recent budget raised the National Insurance rate for employers starting in April and lowered the threshold for contributions. In addition, the National Living Wage will also increase. While the government defends these changes as necessary to protect public services, and unions welcome the minimum wage hike, the retail sector has voiced concerns. M&S, for instance, was among those who urged the Chancellor to reconsider these tax measures.

Although M&S posted strong profits last year, Machin warned that many retailers would struggle, leading to job cuts, fewer stores, and slower wage growth in the sector. He also criticized the new extended producer responsibility (EPR) levy, which aims to make businesses cover the full cost of recycling packaging. The British Retail Consortium estimated the measure would cost the sector £2 billion, with Machin arguing it would unfairly increase retailers’ tax burden without improving recycling outcomes.

To address these issues, Machin called for a delay in the EPR fees, a phased increase in NICs over two years, and a rethinking of business rates. In response, the Treasury reiterated its commitment to long-term stability and growth, pointing to initiatives like capping corporation tax and cutting business rates for retail, hospitality, and leisure from 2026.