Marks & Spencer CEO hits Rachel Reeves with 6 no-nonsense demands

The boss of Marks & Spencer has made six demands of Rachel Reeves ahead of the Budget in six weeks' time. M&S chief executive Stuart Machin urged the Chancellor to "change course" to break Britain out of the economic "doom loop" of continually rising taxes and low growth.

Mr Machin described Ms Reeves' increase in the amount employers contribute to National Insurance as "catastrophic", adding retailers have faced an "alphabet soup" of taxes and red tape over the past year.

Writing in The Times, Mr Machin outlined six demands, saying: "The Chancellor has two paths ahead of her.

"More of the same: plugging fiscal holes with tax rises, stoking inflation and suppressing demand,' Mr Machin wrote in an article on the M&S website.

"Or change course: spend less, borrow less, tax less, regulate less, reduce inflation and enable growth."

M&S's boss said the company's tax bill has risen to around £650million per year, with prices hiked by firms as increases in costs are passed to shoppers.

He reminded the Chancellor of her pledge that tax rises last year were a "one off", adding geopolitics didn't make that moot.

Mr Machin said the world economy was volatile then, is the same now and will be so for the foreseeable future.

Asked about tax rises during a trip to the US earlier this month, Ms Reeves suggested the public would see the outlook for the global economy has darkened, noting the world has been a "very volatile place".

The Chancellor this week faces further bad news on the economy. Economists have predicted Consumer Prices Index (CPI) inflation will have hit 4% in September. That would mark the highest level since January 2024.

The September inflation rate is typically used to decide the level of increase for many benefits, such as universal credit, tax credits and disability benefits. A 4% rise would add a significant amount to Britain's already spiralling welfare bill.

Higher inflation would also contribute to a higher tax take, with the September rate typically used to calculate some annual tax increases, such as for business rates, putting extra pressure on businesses.

Figures published by the Office for National Statistics today (October 21) show public sector net borrowing rose to £20.2billion for the month, £1.6bn higher than in September 2024.

The figure means the Government spent more on the public sector than it took in via taxes and other income in September, forcing it to borrow billions.

HM Treasury has been approached for a response to Mr Machin's comments.

The Chancellor on Tuesday announced plans to slash business red tape and regulations, which the Government said would save firms almost £6bn per year by 2029 and drive economic growth.

Ms Reeves also announced £104million from the National Wealth Fund to finance onshore and offshore wind power projects in Norfolk and the Orkney Islands.

Infrastructure experts would also be sent to regions to speed up local projects under the Government's plans.

The raft of announcements at an investment summit in Birmingham come after the Government said billions would be unlocked to build "affordable" homes and boost rural broadband to spur growth in a scheme involving pension funds and insurers.

The Chancellor has also blamed Brexit for making Britain's economy and productivity weaker than forecast when a majority of voters opted to leave the EU.