Archie Norman, chairman of Marks & Spencer (M&S), has said that the cost of taxes and employing workers is preventing businesses from investing as much as they could in the UK.

Speaking at M&S’s annual general meeting, Norman blamed “big regulatory headwinds” for lack of investment in the UK economy and argued that interventions by government and regulators have “never been more impactful”.

Responding to Keir Starmer’s recent resignation as prime minister, Norman avoided giving his opinion on future potential leaders.

“You can spend an enormous amount of time worrying about what the government might or might not do next, but in the end, what makes a difference for us is what we do in our business,” Norman said.

This is not the first time that Norman, who served as a Conservative MP in opposition for almost eight years, has been outwardly critical of the Labour government’s stance on employment law.

In M&S’s annual report, published in May, Norman told shareholders that “there has rarely in the history of M&S been a time where the regulatory environment has been less friendly to growth,” adding that its investment and tax burden increased “substantially” throughout 2025.

Norman also said that smaller retailers are more impacted by these macroeconomic factors, stating that “the result is reflected in the continued decline of many high streets and town centres across the country”.

His comments echo those of Lord Simon Wolfson, the chief executive of Next, who in May said increases in national insurance and living wage by the Labour government have forced retailers to hire fewer entry-level workers.

He added that in 2024 10 workers applied for every Next vacancy but that this number has now risen to 19.

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