M&S boss blasts Labour over ‘one of the biggest tax grabs in history’

Chief executive Stuart Machin warned that government decisions over the past two years had left M&S facing an “onslaught of costs”.

He also criticised Chancellor John Healey’s autumn Budget last week, calling it “a whole lot of nothing” for businesses.

His comments came as M&S reported that half-year profits had more than doubled.

The improvement was helped by a recovery from last year’s cyber attack and strong growth in food sales.

He singled out changes to business rates, noting that even measures which appeared helpful on the surface would actually pile an extra £10million onto the retailer’s bill.

“If you look at the last three budgets, I can’t think of another time like it,” Mr Machin said.

“It’s one of the biggest tax grabs in history that I have seen.”

M&S also revealed it has taken on approximately £35million in costs this year from higher packaging taxes alone.

On top of that, the company faces rising national insurance contributions, increased wage bills and additional expenses linked to disruption in the Middle East.

Despite the mounting cost pressures, M&S delivered an impressive set of financial results.

Adjusted pre-tax profits rose to £403.2million for the 26 weeks to September 26, more than double the £184.1million recorded in the same period a year earlier.

However, the figure still fell below the equivalent period in 2024, weighed down by weaker returns from fashion, home and beauty alongside the heavier cost burden.

Total sales climbed 16.2 per cent to £9.25billion across the half-year.

The food business was a particular bright spot, with sales jumping 13.9 per cent. Volume sales in food grew by 11.9 per cent, boosted by new store openings and investment in the division.

Fashion, home and beauty revenues rose 17.5 per cent year on year, helped by the recovery of online trading.

The online sales shutdown lasted around six weeks after hackers struck the business over the Easter weekend last year, leaving shelves bare and logistics systems in disarray.

Mr Machin acknowledged that the fashion, home and beauty arm “fell short of their potential” despite bouncing back from the incident.

Bosses said product availability in that division was still suffering from the “long-tail impact” of the cyber attack. A prolonged spell of hot weather over the summer also dented store sales.

Looking ahead, Mr Machin said the company remains “cautious about recruitment” as it navigates rising employment costs and fragile consumer confidence.

“Despite the onslaught of cost headwinds, we have remained focused on our ambitions and we are clear on our plan,” he said.

“We enter the second half in a strong position, with a solid performance in October under our belts.”