M&S chairman issues stark UK warning as Britain branded ‘anti-growth’ | UK | News
The chairman of Marks & Spencer has issued a scathing assessment of Britain’s business environment, warning that over-regulation and rising tax costs are making it increasingly difficult for companies to invest and expand.
Archie Norman used the retailer’s latest annual report to argue that the environment facing businesses has become one of the least growth-supportive during his time at the company.
“There has rarely been a period in M&A history when the regulatory environment has been less friendly to growth and investment and our tax burden has increased significantly during the year,” he wrote.
Mr Norman said despite the challenges, Marks & Spencer would continue to push forward, but many smaller firms may struggle to meet the same pressures.
He also warned that current policies were contributing to the ongoing deterioration of high streets and town centers across the country.
Why Archie Norman warns about UK growth
The veteran retailer noted the combination of regulatory demands and higher costs facing employers.
His comments add to growing concerns among business leaders, particularly in the retail sector, about the direction of government policy and its impact on investment, hiring and economic expansion.
Mr Norman said M&S would “sail the wind and ride the waves” despite tougher conditions.
But he cautioned that many competitors do not have the same scale or durability to withstand increased loads.
What do other business leaders say?
Concerns were echoed by David McDowall, chief executive of pub giant Stonegate, who attributed recent increases in youth unemployment to government decisions affecting employers, the Telegraph reported.
Writing on LinkedIn, he said: “If the government is serious about reversing this rise in youth unemployment, it must first review its own policy decisions. We have no desire to employ young people; we do not have the economic breathing space to do so.”
Mr McDowall described the figures as “a stark reminder of what happens when government policy actively penalizes this job creation”.
Why are businesses clashing with the government?
The latest intervention follows a series of public criticisms from leading business leaders.
Last week, Lord Wolfson of Aspley Guise, Next’s chief executive, argued that the Government had “put its foot on the brake” when it came to economic growth.
He also claimed Labour’s Employment Rights Bill had contributed to a “dramatic decline” in entry-level job opportunities.
Meanwhile, Currys chief executive Alex Baldock warned last year that planned workers’ rights reforms risked reducing the availability of part-time jobs.
Mr Norman has previously criticized the measures, describing them as “a political indulgence the country cannot afford”.
What frustrated business leaders?
Employment reforms are not the only source of tension between corporate bosses and ministers.
In March, Asda chairman Allan Leighton said the Government had “zero credibility” following allegations of profiteering by oil retailers during fuel market disruption linked to the conflict involving Iran.
Many senior figures in the business world backed Labor ahead of the 2024 General Election, hoping the party would pursue a more growth-oriented agenda.
But companies have since faced a range of additional costs, including higher National Insurance contributions for employers and above-inflation increases to the minimum wage.
Some of Britain’s biggest employers are now publicly voicing their concerns, while business leaders are increasingly questioning whether these measures are helping or hindering economic growth.
