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The boss of Marks & Spencer has warned customers were “planning for the worst” ahead of the Autumn Budget. Stuart Machin branded the Chancellor’s speech on Tuesday a “presentation of nothing”, as he revealed shoppers were now even more worried about tax hikes. Store chains are among those fearful that the later than normal Budget , at the end of November, will hit customer confidence in the vital final weeks before Christmas . Mr Machin said: “I was hoping for some news so we could keep planning but we are sitting here waiting for the 26th”. The chief executive, who revealed he had a “frank” conversation with Ms Reeves during a store visit last month, said the evidence from customer surveys its conducts suggested Ms Reeves’s speech had made them even more nervous. "They are getting worried about rising costs and they got more worried after yesterday’s speech,” he said. They are very worried about tax rises and they think things are heading in the wrong direction.” He went on: “They are planning for the worst and hoping for the best.” Mr Machin, whose pay and perks soared 40% to more than £7million last year, also slammed Ms Reeves for insisting that the economic go-slow and black hole in the public finances were due to Brexit and other factors. “You can’t keep blaming the past,” he said. “We have to move on.” Referring to a fall in government borrowing costs in the wake of Ms Reeves’s Downing Street speech, he said: “Of course the presentation may have calmed bond markets, but it hasn’t calmed our customers,” Despite his criticism, Mr Machin said customer feedback also showed that they were “more excited” about this Christmas than in recent years. This suggests that, while worried about the Budget and with the cost of living squeeze enduring, they are keen to loosen the purse strings when it comes to the big day. It came as M&S revealed profits crashed 99% in the past six months despite recovering £100million from insurers for a devastating cyber attack. The hack crippled online fashion and homeware sales, which plunged more than 40%. M&S said the cost of the attack is set to total around £136m, including roughly another £34m in the six months to next March. The total impact is lower than than the £300 million cost estimate given by M&S in May. On a reported basis, profits were almost wiped out, plunging to £3.4million from £391.9 million a year ago. Underlying pre-tax profits tumbled 55.4% to £184.1million in the six months to September 27. M&S said sales in its fashion arm dropped by 16.4% as the cyber attack wrought havoc, with sales online down 42.9% and 3.4% lower across its stores. The high street stalwart stopped all online sales for around six weeks and suffered empty shelves due to disruption to its logistics systems after hackers targeted the business around the Easter weekend. Customer personal data - which could have included names, email addresses, postal addresses and dates of birth - was also taken by hackers. Mr Machin, chief executive of M&S, said: “The first half of this year was an extraordinary moment in time for M&S. However, the underlying strength of our business and robust financial foundations gave us the resilience to face into the challenge and deal with it. We are now getting back on track.” He said the group also faced cost increases of more than £50million from the national insurance hike in April over its first half, but that he expects profits to be “at least in line with last year” in the final six months of its financial year as it ramps up its cost-cutting target to £600million.
