Stuart Machin told reporters in the wake of the Budget that Chancellor John Healey’s announcement would add £10 million in business rates to the company, which already pays £170 million each year.
Machin said to journalists: “Even the headlines on business rates sounded positive, but it actually adds another £10 million to our business rates bill.
“If you look at the last three budgets, I can’t think of another time like it. It’s one of the biggest tax grabs in history that I have seen.”
Machin welcomed the progression of a UK-EU deal, but was disappointed that not all of his asks had been answered in the Budget. Machin’s asks included undoing the cut to the National Insurance threshold, getting rid of Extended Producer Responsibility and making sure the Employment Rights Act doesn’t ban the Saturday job by treating weekend shifts as ‘low hours’ contracts.
Stockpiling “tells customers to worry”
He also criticised Government’s decision to advise shoppers to stockpile, which saw shoppers being told to purchase enough provisions to last three days as needed.
Machin added: “Everything is pointing to people saying ‘we’re worried about cost of living, we’re worried about the headwinds’, and of course they are being told to worry as well.
“The stockpiling announcement a couple of weeks ago, when you get told by the Government to stockpile, everyone sits there and says: ‘well, you’re telling me to worry about something.’”
M&S “hits the ground running” in H1 2026
Machin’s criticism of the Budget comes as M&S posted its results for the first half of the year, with group adjusted profit before tax reaching £403.2 million, up from £184.1 million the year prior.
Statutory profit before tax was £355.1 million, versus £3.4 million last year. M&S attributed the progress to recovery from a cyber-attack in April 2025.
Food sales were up by 13.9%, and the category achieved an adjusted operating profit of £288.6 million. Ocado Retail sales were up 20.6%, with an adjusted operating profit of £25.6 million.
Stuart Machin, CEO of M&S, commented on the results: “We hit the ground running in the first half of the year, accelerating the pace of change and delivering market share growth in both businesses. Our hard work over the last few years to create a strong balance sheet has built a firm financial footing from which to invest and we are confident in the opportunities ahead. Despite the onslaught of cost headwinds, we have remained focused on our ambitions, and we are clear on our plan.
“Our Food business is ahead, delivering double-digit volume growth in a flat market and we have momentum as the UK’s fastest growing grocer. One and a half million more customers are shopping with us and our continued focus on quality, innovation and value is appealing to more families, as we become more of a shopping list retailer. Investment in new stores, technology and a modern supply chain are getting us ahead for future growth, and our plan to double the size of the Food business is on track.
“Our International business is growing, expanding through strategic franchise and marketplace partnerships. Ocado Retail is now profitable, supported by strong growth in M&S Food sales. There is work to do, but we see significant opportunities ahead for both. We enter the second half in a strong position, with a solid performance in October under our belts.”
