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M&S Boss Says Policy Levies Now Exceed Half Of Its Energy Bill

Business leaders warn policy add‑ons plus war‑driven energy costs are squeezing retailers, raising the risk of higher prices.

Overview

  • Marks & Spencer chief Stuart Machin said government policy charges now account for more than half of the retailer’s total energy bill, calling the burden unsustainable for UK businesses.
  • These non‑commodity charges include the renewables obligation, levies that fund clean‑energy schemes and feed‑in tariffs, network fees for grid upgrades, and the climate change levy on business energy use.
  • The government said wholesale energy costs remain the largest part of bills and pledged targeted help for households as it pursues a clean‑power goal designed to cut long‑term exposure to fossil‑fuel price shocks.
  • New line items to fund the Sizewell C nuclear project and extra electricity pylons are due to start appearing on business energy bills from next month.
  • Retailer Next reported a £15 million cost hit linked to the Iran conflict and said it could absorb these pressures for about three months before prices rise, as the OECD warned the UK faces a large growth hit from the war.