Stuart Machin, chief executive of Marks & Spencer, expressed significant disappointment with Chancellor John Healey’s budget announcement from the previous week, describing it as a “whole lot of nothing” and criticizing what he characterized as an “onslaught of taxation and regulation” from the Labour government. While acknowledging the expected completion of a new food trade deal with the European Union later in the month, Machin highlighted concerns about specific budget measures affecting M&S operations.
Machin took particular issue with the business rates freeze, noting that despite being frozen in real terms, it would still increase M&S’s rates bill by an additional £10 million on top of its existing £170 million annual rates expense. He also objected strongly to the planned deposit return scheme, which he called “the most ridiculous,” under which retailers must install return machines for cans and plastic bottles in stores beginning next October across England and Scotland, with glass bottles also included in Wales.
The M&S executive voiced strong support for the anticipated food trade deal with the EU, explaining that such an agreement would help alleviate a £10 million annual post-Brexit impact on the retailer stemming from increased paperwork, packaging, and logistical expenses related to shipments to Ireland and Northern Ireland. The deal is also expected to benefit UK food exports to mainland Europe.
M&S reported that its financial performance recovered substantially, with profits reaching £355 million in the six months ending September 26, compared to £3.4 million in the prior year period. This improvement reflected partial recovery from a significant cyber-attack that occurred over Easter 2025 and forced the closure of its website for over six weeks. Despite the recovery, clothing and homewares sales remained below levels from two years prior, constrained by extended disruptions from manual ordering processes and higher fulfillment costs associated with increased online shopping during warm weather conditions. The retailer’s food business demonstrated stronger performance, with sales rising nearly 14 percent, while its Ocado joint venture returned to profitability with a £25.6 million profit compared to a £3.1 million loss previously. M&S plans to reduce costs by £120 million this year while avoiding redundancies, though it signaled a cautious approach to new hiring.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI