The retail giant is said to be opposing UK Chancellor Rachel Reeves’ plans to increase property tax in her next Autumn Budget.
The Telegraph reported that M&S is “spearheading a fight-back” among Britain’s major brands, who fear the new shopping tax will force them to put up prices.
In evidence submitted to Angela Rayner’s department, M&S warned that 111 of its branches would be hit with higher bills because of the changes and could be forced to close.
In a statement, the retailer commented: “Given larger retailers are often anchor tenants on the high street, taxing them to support smaller stores is a false economy – if larger shops close, smaller shops suffer.
“The proposed reforms could therefore accelerate the decline of the high street by encouraging retailers to close larger high street stores.”
As it stands, the UK government’s business rates reform, which is due to come into effect in April 2026, targets larger stores valued over £500,000, while smaller properties would have their rates reduced.
Sources for The Telegraph said that while the Treasury had not yet decided on the new rates, any surcharge on large properties would be set at the maximum.
Who is Rachel Reeves?
A Treasury spokesman told the outlet: “We are a pro-business government that is creating a fairer business rates system to protect the high street, support investment, and level the playing field.
“To deliver our manifesto pledge and provide certainty and support to the high street we intend to introduce permanently lower tax rates for retail, hospitality, and leisure properties from next year.
“Unlike the current relief for these properties, there will be no cash cap on the new lower tax rates, supporting some of Britain’s most loved high street chains to continue to create jobs and grow the economy.”
Which Marks and Spencer stores are closing?
M&S announced in 2022 it intended to reduce its number of traditional department stores from 247 to 180, while also opening 100 new food halls by April 2026.
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So far, several larger M&S stores have shut across the UK last year, including branches in Cheltenham, Peterborough and Sunderland.
In recent weeks, Marks & Spencer’s nearly 100-year-old flagship department store in Wolverhampton, West Midlands, also announced it is set to close.
Newsquest has contacted M&S for further information regarding the future of its stores surrounding tax changes.
