British retail has already had a tough start to 2025 after a shocking end to 2024, and now a leading retail boss has issued an ominous warning revealing the rest of this year will be much worse
The boss of Marks & Spencer has issued an ominous high street warning ahead of the incoming employer’s National Insurance rise. Businesses are set to be hit by a huge rise in costs in April thanks to Labour’s Autumn Statement, with many already downsizing.
Leading names such as Sainsbury’s, Tesco, WHSmith and more have either closed stores, cut staff or sold premises. And now the CEO of Marks & Spencer has made more worrying comments ahead of another tumultuous period for British retail.
Speaking to the Sunday Times, Stuart Machin claimed that the budget means UK retail “will get smaller” which leaves “no doubt that there will be fewer jobs, fewer shops, and slower wage growth across the sector as a whole”.
He said: “The blunt truth is, left how it is, the budget means UK retail will get smaller. The sector already pays an effective tax rate of 55% and the chancellor’s budget will add £7 billion of extra employment costs and an increased packaging levy to a sector working on margins of 3-5%.
“While businesses like M&S will fight tooth and nail to hold down prices for customers, the British Retail Consortium and Institute of Grocery Distribution are already projecting food inflation of more than 4%.
“Measures announced in October budget are contributing to the anaemia behind lower growth forecasts. But there are some immediate steps that the government can take now to reverse that malaise and drive growth today, and we have been clear on these in our communication with the chancellor and her team.
“Business leaders constantly react to a changing world and new pressures, balancing the short and long term, being open when we get things wrong and course-correcting. Looking after growth today, to enable investment in tomorrow.
“The government must do the same and it will be respected for its strength of leadership and honesty if it does. The chancellor must act now.”
So far, Chancellor Rachel Reeves has refused to go back on her announcement, with Prime Minister Keir Starmer backing her wholeheartedly.
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