M&S boss accuses Labour of 'biggest tax grab in history' after an 'onslaught' of cost increases

Updated: 05:29 EDT, 4 November 2026 The boss of Marks & Spencer has accused the Government of staging one of the 'biggest tax grabs in history' as it was left reeling from a series of cost increases. Boss Stuart Machin said the retailer had been hit by an 'onslaught' of headwinds in recent months, and that its business rates bill would rise by another £10 million next year.Writing in the Mail last month, Machin called on the Chancellor to reverse 'the mistakes of the last two Budgets' and said rises to employer National Insurance contributions had made it harder for firms to hire young people.Today he dismissed John Healey's Budget as a 'whole lot of nothing' and said the past three years of Labour policies equate to 'one of the biggest tax grabs in history'.'You can't ignore the onslaught of all the headwinds,' he said. 'It's probably more challenging than we've ever seen in the past in trying to balance the books. But we do want to make sure we're constantly getting costs out and reinvesting in value.' M&S paid out £40million for the new packaging tax from its food margin, which 'really just meant in that month we broke even on food.' And while the extra costs don't equate to redundancies, Machin said the retailer has to be 'mindful of future recruitment costs'. But Marks & Spencer says it is primed for an ‘unforgettable’ Christmas as profits recovered after last year’s cyber attack. Marks & Spencer boss Stuart Machin said the Budget had been a 'whole lot of nothing'.Profits rebounded to £355.1million for the 26 weeks to September 26, compared to £3.4million last year after M&S was forced to pause sales on its website for around six weeks after cyber criminals infiltrated its systems over the Easter weekend in 2025.Sales in its food business rose 13.9 per cent to £5.1billion as boss Stuart Machin said the retailer was gearing up to cash in on customers dining out less and ordering fewer takeaways this Christmas.The business has also seen momentum behind new food ranges after its product development director Kathryn Turner has become a beloved star of social media in recent weeks.Machin said he was 'monitoring' incidents of supermarkets' fridges being hacked in Europe closely and that cyber security is a concern 'every day' for the company.But M&S said its fashion, home and beauty business had faced the ‘long tail impact’ of the hack, resulting in disruption to availability ‘in selected core lines and sizes’. Sales recovered 17.5 per cent to just under £2billion compared to last year, but fell short of recovering to its 2024 levels.Machin has previously said some traditional customers of the brand have complained about the lack of options for their demographic and asked for fewer ‘skimpy tops’.He said that some had complained about there not being enough summer dresses with sleeves while viral products sold out too quickly, leaving Machin to admit 'we felt we left money on the table'.Machin said the segment had been ‘gaining share in a declining market’, claiming that Worldpanel research shows £1billion of sales have come out of the UK fashion market over the six months, compared with the level two years earlier.He added: ‘Availability and stock flow are now improving, we are broadening our appeal and the brand is in good health, but the results fell short of their potential and show there is a lot more to do.’The high street boss acknowledged that customers were worried about the cost of living, but research showed 'they're saving a bit [to get] ready for Christmas'. He added: ‘So we're not overly concerned with Christmas. We know customers are telling us they're eating out less. That's good for us. We know customers are saying they're buying nest takeaways. That's good for us. That gives us a bit of confidence as we head into Christmas.’It comes as the FTSE 100 store has recruited Lucy Punch, star of the sitcom Amandaland, as the face of its Christmas advertising campaign.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you