Retail bosses ramp up pressure on Healey to cut ‘ridiculous’ tax burden

Chief executives of Marks & Spencer and John Lewis have urged Chancellor John Healey to reduce the "ridiculous" tax burden faced by high street firms. Stuart Machin, CEO of M&S, urged Healey to "restore hope" in the industry following Labour's last two budgets, which he called a "disaster". The intervention comes less than three weeks before the Budget, intensifying pressure on Andy Burnham to revitalize Britain's high streets.

While the Prime Minister has focused on tax breaks for pubs and cracking down on gambling shops, retailers warn Burnham that he must support the high street's biggest players to lead this revival. Machin, in the Daily Mail, called on Healey to overturn "patently ridiculous" recycling rules, prevent Labour's workers' rights crackdown from banning Saturday jobs, and secure a "common sense" food trade deal with the EU.

Jason Tarry, chairman of John Lewis and Waitrose, added to the chorus of retail bosses urging Healey not to impose a "warehouse tax" that would disproportionately affect high street shops. The "warehouse tax" would hit over 200 John Lewis and Waitrose stores, but only 18 distribution centres. Tesco's CEO, Ken Murphy, urged Healey not to impose the warehouse tax, stating that retailers pay four times their fair share of rates on average.

The British Retail Consortium (BRC), representing major grocers, has criticized the "punishing" tax burden faced by the industry in recent months, noting that retailers pay 72p in tax for every pound they make, making it the second-highest taxpaying sector behind hospitality.