John Lewis and M&S warn Budget tax raid threatens high street
The bosses of John Lewis and Marks & Spencer have warned that Labour's Budget measures, including a warehouse tax and employer national insurance, will hit the high street.
The Full Story
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High street chiefs go public on Budget fears
The bosses of John Lewis and Marks & Spencer have warned that Labour's Budget plans will add to the pressures facing the high street. The chairman of John Lewis wrote in the Daily Telegraph that a warehouse tax on supermarkets and stores could threaten mass closures. The boss of Marks & Spencer wrote in the Daily Mail that government policies were a crushing disappointment and told Labour to take the handcuffs off business. The two articles ran on separate newspaper front pages and were described in a late night television discussion as a pincer movement by big high street names against the government's economic plans.
The warnings were discussed in the context of the Budget due on 28 October. A guest on the programme said he would support reversing the rise in employer national insurance contributions brought in by Rachel Reeves. He argued the measure was superficially attractive because it raises around £3bn, but said half of it would be paid by government because public sector employers such as the NHS, schools and local authorities would carry the cost. The rest, he said, would act as a tax on jobs and discourage businesses from taking on young people. Scrapping the rise, he added, would not cost £3bn outright and could pay for itself within one or two years by boosting the economy.
Small business costs also featured. A pub owner with 20 years in the trade said two Reeves budgets had added about £30,000 a year to his costs, the equivalent of selling around 14,000 extra pints. He said hospitality had been hit hard, with more than 150,000 people losing their jobs, and stressed that entry level work in pubs and restaurants was important for mental health and social contact. He questioned whether it was still worth running his business when his house was on the line as a personal guarantee.
The discussion also heard claims that 16 billionaires have left the UK since 2024, taking more than £100bn in tax revenue, and that the coming Budget needs to be business friendly. Contributors said big household-name employers were 'screaming for help' and warned that the tax burden could lead to job losses and higher prices. The front pages were framed as a difficult moment for Labour, with retailers making their pleas early before the Budget.
On screen
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Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |
|---|---|
| Only on one channel | |
| A pub owner said two Reeves budgets added about £30,000 a year to his costs, equal to about 14,000 extra pints he would have to sell. | |
| John Lewis chairman warned that a warehouse tax on supermarkets and stores could threaten mass closures. | |
| M&S boss criticised Labour's policies as a major disappointment and called for fewer restrictions on business. | |
Channel Perspectives
What each channel focused on, with key quotes.
The segment treated the two newspaper exclusives as a coordinated pincer movement by large high street employers against Labour's Budget. It gave most of its airtime to business complaints, including a call to reverse employer national insurance rises, and to a pub owner's account of rising costs. The tone was sympathetic to the retailers and hostile to the government's tax plans.
- “this is across two separate newspaper front pages there's a pincer movement from some of the big high street stores taking place here”
- “i would support um john healey actually reversing what rachel reeves did on the uh employers nic”
- “this Labour government has made me think is it worth me putting my house on the line”
Broadcast Timeline
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