Marks & Spencer boss Stuart Machin has criticised plans to raise business rates from the end of next month and lashed out at the government’s handling of the economy ahead of today’s Budget.
On his LinkedIn page, Machin said the business rate revaluation was “economically illiterate” and argued the planned increase in business rates would affect retailers the most when they next increase at the end of April.
He said: “The total tax rate for retailers sits at 45.7%, compared to just under 40% for the FTSE 100 – with retail almost always the sector with the tightest profit margins. The reason for this is business rates.
“So, increasing the business rates multiplier by nearly 7% from April 1 – at a time when the government is looking to tackle inflation, retailers are working hard to offer customers the very best value, and people are struggling with the cost of living – is economically illiterate.”
Machin also compared trying to run a business under the current government to “running up a downwards escalator with a rucksack on your back”.
Alongside action on crippling business rates, Machin also called on the government to reform the apprenticeship levy and bring back VAT-free shopping for international tourists.
Machin said the absence of tax-free shopping had been “keenly felt” in London, citing it as one of the main reasons for Oxford Street’s struggles.
“We must do everything we can to restore the street to its former glory and get that lost footfall back,” he said.
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