Tom Kerridge, the celebrated chef and restaurateur, has issued a stark warning about the severe impact of the UK government’s recent national insurance hike on the hospitality industry.
Kerridge, who operates several establishments including the two-Michelin-starred Hand and Flowers in Marlow, fears that many businesses will struggle to cope with the increased costs, potentially leading to widespread closures.
Speaking on Sky News, Kerridge shared his concern over the additional financial strain the changes will place on employers. “There will be a huge amount of closures,” he predicted. “We’ve already seen high-profile names and Michelin-starred restaurants deciding to shut their doors. When that starts to happen, it filters down to the broader industry.”
The national insurance increase, part of the government’s broader fiscal strategy, will require employers to contribute significantly more per employee annually. Kerridge estimated that businesses could face an additional £800-£850 per employee each year. For smaller firms already battling rising food and energy costs, as well as the lasting effects of the COVID-19 pandemic, this represents an “awful lot of money” and a potential tipping point.
The outcry against the national insurance hike has been widespread across the retail and hospitality sectors. Last month, over 200 of the UK’s leading hospitality businesses signed a joint letter to the Chancellor, urging reconsideration of the tax increase. These businesses warned that the measure could lead to job cuts and reduced investment, hindering the sector’s recovery from the pandemic.
Andrew Higginson, Chair of the British Retail Consortium, echoed these concerns, describing the additional costs as “too much for the [retail] industry to bear.” Analysis from Deutsche Bank has further highlighted the risks, estimating that the hike could result in the loss of approximately 100,000 jobs.
Kerridge also called attention to the frustration many business leaders feel towards government policy, emphasizing the need for a more supportive approach to small businesses. “I do feel that the
While expressing continued support for Labour as a party capable of addressing the nation’s “broken infrastructure,” Kerridge urged policymakers to recognize the critical role that small businesses play in the UK’s economy. “We need measures that foster recovery and growth rather than placing additional burdens on already strained industries,” he argued.
