M&S Warns £150 Million Tax Hit Is Curbing UK Investment as Costs Squeeze Pay
Updated
Updated · City A.M. · Jul 7
M&S Warns £150 Million Tax Hit Is Curbing UK Investment as Costs Squeeze Pay
3 articles · Updated · City A.M. · Jul 7
Summary
£150 million in extra taxes hit M&S this year, and chairman Archie Norman told shareholders those rising tax and employment costs are making it harder for businesses to invest and prosper in Britain.
Archie Norman said tax, regulatory and government decisions have become unusually influential, though he urged companies to keep pressing ministers while staying focused on products, operations and customers.
£14 million of the burden came from the Extended Producer Responsibility levy on non-renewable packaging, which chief executive Stuart Machin said made a "massive dent" in food profitability and limited scope for higher staff pay.
M&S is making that case while still recovering from last year's cyber attack, which cut annual profit 29% to £365 million after a £131 million hit, even as food sales rose 7% to £9.7 billion.