M&S boss accuses Labour of 'one of the biggest tax grabs in history' as profits rebound from the cyber attack
An M&S food store, where food sales surged 13.9% in the six months to September as the retailer absorbed roughly £100 million in lost profit from the April 2025 hack.5 million more food customers than a year ago while absorbing around £35m in new costs from packaging taxes, higher National Insurance and Middle East supply disruption.
M&S chief executive Stuart Machin branded Chancellor John Healey's Budget "a whole lot of nothing" and argued that three Labour Budgets have loaded around £73bn in additional taxes onto businesses, leaving M&S confronting costs its boss described as harder to manage than anything he has seen before. In the past six months alone, the retailer has absorbed roughly £35m in new charges from packaging levies, higher National Insurance and disruption caused by conflict in the Middle East.
The business rates 'freeze' Healey announced will in practice add a further £10m to M&S's existing £170m annual bill, with retailers warning that a 3.5% inflation rise pushes £250m in extra costs across the high street.
M&S profits recovered to £355m in the six months to September, up from just £3.4m in the same period a year earlier, when the Easter 2025 cyber attack knocked its website offline for six weeks.
Clothing sales have yet to recover to pre-attack levels because manual ordering left gaps on shelves — but Machin says the company is primed for an 'unforgettable' Christmas, with food sales having surged 13.9%.
