The recent Budget has left many business leaders wanting, particularly due to unclear reforms affecting various sectors.
- M&S CEO Stuart Machin expressed dissatisfaction with the lack of clarity on business rate changes following the recent Budget announcement.
- Retailers like M&S are concerned about the delayed implementation of reduced business rates, impacting plans and finances.
- The hike in National Insurance Contributions is set to add significant financial pressure on businesses in the coming years.
- Changes to inheritance tax relief are causing unrest among farmers, raising concerns about future financial burdens.
Following the recent Budget, M&S CEO Stuart Machin voiced his disappointment over the uncertainty surrounding business rate reforms. He highlighted the lack of immediate changes and the postponement of meaningful reductions until 2026. Machin stated, “We were hoping for some good news on business rates,” noting that the retail sector, constituting only 5% of the economy, is burdened with 21% of the rates. The fact that M&S paid £170 million last year underscores this disparity.
Despite some acknowledgment that retail and hospitality deserve a break, the unclear outline of what changes will look like and the push to implement these in 2026 are frustrating for business leaders. Additionally, Machin expected reforms on the apprenticeship levy, which were not addressed, contributing further to his dismay.
Moreover, the decision to increase National Insurance Contributions represents a significant challenge for M&S and similar businesses. From April 2025, the rate will increase from 13.8% to 15%, and the threshold for employer contributions will decrease from £9,100 to £5,000. Machin estimates this change generates an additional £60 million expense for M&S, compounding the fiscal strain when combined with existing obligations.
The Chancellor’s Budget has also introduced changes affecting agricultural sectors, notably the reduction of inheritance tax relief on farms valued above £1 million to 50% starting April 2026. This decision has riled stakeholders like National Farmers Union President Tom Bradshaw, who warns of increased production costs that could compound existing financial strains on farmers already stretched to the limit. Machin has acknowledged the hardships faced by farmers and emphasized M&S’s commitment to supporting them through sourcing British products.
Despite these financial challenges, M&S has reported a rise in profits, driven by strong food sales. This growth is part of its broader strategy to become the “most trusted retailer,” indicating potential resilience amid external pressures.
M&S remains committed to navigating financial challenges while supporting related industries.
