Retail bosses prepare for No11 summit as Chancellor is urged not to clobber businesses with more tax hikes in Budget

Published: 19:12 EDT, 10 October 2026 | Updated: 19:19 EDT, 10 October 2026 The Chancellor is set to host a delegation of retail and hospitality chiefs in Downing Street on Tuesday, amid reports that a 'warehouse tax' raid has been ruled out.John Healey has come under mounting pressure not to clobber businesses with more tax hikes and business costs that have pushed up prices, as he prepares to unveil his first Budget in 17 days' time.Marks & Spencer boss Stuart Machin has led the charge, urging the new Chancellor 'to get Britain growing again by taking the handcuffs off business'.In a dramatic intervention, he told the Daily Mail yesterday that Labour's last two Budgets – which piled £75 billion of extra taxes on firms and families – were 'a disaster' that the Chancellor needed to reverse.The call was echoed by Jason Tarry, chairman of John Lewis and Waitrose, who warned the Government that a tax raid on department stores and supermarkets could trigger a wave of shop closures that would 'only harm our high streets'.Retailers are particulary concerned that Prime Minister Andy Burnham's promise to cut business rates for pubs, clubs and music venues will be funded by hitting larger supermarkets with a so-called 'warehouse tax'.'You're paying for a cheaper pint by loading costs on to the weekly shop,' Mr Machin said.In the Mail's exclusive yesterday, he urged Mr Healey to 'restore hope' and added: 'I've never hidden what I thought of the last two Budgets. They were a disaster. Britain needed a plan for growth and got a pile of new taxes and regulations instead. John Healey has come under mounting pressure not to clobber businesses with more tax hikes and business costs that have pushed up prices, as he prepares to unveil his first Budget in 17 days' time M&S boss Stuart Machin with then-Chancellor Rachel Reeves and a long serving M&S staff member. In a landmark intervention, Mr Machin branded Labour's previous budgets 'disasters' and 'a crushing disappointment for customers, colleagues and businesses''I know money is tight. I'm not asking the Chancellor to rip up his fiscal rules. But at the very least, he should start unravelling the mistakes of the last two Budgets.'British firms already face the highest property tax burden of any major economy, a recent report by tax consultants Ryan found. Labour has increased business rates on large warehouses, introducing a higher rate surcharge for larger commercial properties with rateable value above £500,000.Dubbed the 'Amazon tax', it was meant to target online retailers and shift the tax burden away from physical high streets.But the tax also applies to 'bricks and mortar' retailers like Tesco, which have huge distribution centres at the heart of their supply chains.Mr Healey is now understood to recognise that a tax increase on warehouse space could hit high street shops and family businesses, Telegraph Online reported.The Chancellor faces a tough balancing act in his maiden Budget after Britain's borrowing costs surged to a 28-year high, cutting the fiscal 'headroom' or buffer he has to play with to just £12 billion.Last night, it was unclear who will be at Tuesday's meeting in Downing Street.Sainsbury's said that it hadn't been invited, while Asda boss Allan Leighton won't be attending due to a prior engagement, spokesmen for the respective supermarkets said.An HM Treasury spokesman declined to comment on 'rumour, speculation or proposals'.'We want Britain's retailers to thrive, and the Chancellor has been clear that the way to tackle cost pressures in the long term is through growth,' they added.'That is why he is focused on creating the conditions for businesses to invest, expand and create jobs in every postcode – and we are already backing firms through business-rates cuts, a cap on corporation tax and a £4.3 billion package to help businesses manage costs and keep investing.'