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Celebrity chef Tom Kerridge warns of widespread closures in hospitality following tax hike

2025-09-28 12:03:24 By

Celebrity chef Tom Kerridge has cautioned that the government's tax increases will have a "catastrophic" effect on numerous hospitality businesses in the coming year.

Kerridge, who was one of 120 business leaders to endorse Labour prior to the General Election, expressed significant "business frustration" with the government following the Budget, as reported by City AM.

"There will be a huge amount of closures," he predicted during his appearance on Sky News last night. "We’ve already got high-profile names and Michelin-star restaurants that have decided to shut their doors. And when that starts to happen, it does begin to filter down," he added.

According to Kerridge, the rise in employers’ national insurance will mean businesses could face an additional annual cost of £800-850 per employee, which he described as "an awful lot of money" for many smaller enterprises.

The retail and hospitality sectors have been vocal in their opposition to the tax increase, highlighting its potential detrimental effects on the economy. Last month, over 200 leading UK hospitality businesses signed a letter to the Chancellor, cautioning that the tax hike could compel many to reduce staff numbers or cut investment budgets.

Andrew Higginson, chair of the British Retail Consortium, also warned that the surge in costs might be "too much for the (retail) industry to bear."

Deutsche Bank's analysis indicates that the national insurance increase could lead to the loss of around 100,000 jobs.

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FirstGroup buys one of London's biggest bus operators in £90m deal

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Vodafone and Three's £16.5bn mega merger approved by competition watchdog

The UK's competition watchdog has given the green light to Vodafone’s monumental £16.5bn merger with CK Hutchison’s Three UK, forming the country's largest mobile operator. In a statement released on the London Stock Exchange, Vodafone characterised the deal as a "once-in-a-generation opportunity to transform the UK’s digital infrastructure," CEO Margherita Della Valle celebrated the birth of a "new force" in the telecoms market. This approval comes after nearly 18 months of consideration by the Competition and Markets Authority (CMA), which had previously expressed concerns that the merger could result in increased bills for millions of customers, as reported by City AM. Last month, the CMA indicated it would back the deal if both companies committed to an £11bn plan to enhance the merged group’s UK network. On Thursday, Vodafone and Three vowed to invest £11bn and establish "one of Europe’s most advanced 5G networks," set to serve over 50m customers. The statement confirmed this commitment would not require any public funding. Stuart Mcintosh, the chair of the CMA’s inquiry group, stated: "After extensive feedback, we believe the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed, but only if Vodafone and Three agree to implement our proposed measures." Vodafone’s Margherita Della Valle asserted that consumers and businesses would benefit from "wider coverage, faster speeds and better-quality connections across the UK," following the merger. Canning Fok, deputy chairman of CK Hutchison and chairman of CK Hutchison Group Telecom Holdings, has expressed his approval following the green light for the telecoms deal. He remarked: "Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications." Fok emphasised the company's enduring commitment to the UK market, stating: "We have been operating telecoms businesses in the UK for over three decades and Three UK for the past two. " He underscored their contributions, adding: "We have invested in the people and the infrastructure, helping to bring the benefits of mobile connectivity to UK businesses and consumers."

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Thames Water CEO defends bonuses of £770,000 for executives as firm posts £190m loss

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Marston's profits jump 64% as pre-Christmas bookings offer hope for bumper year

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Moonpig has reported a loss in the first half of its financial year, as the personalised card maker's experiences business takes longer than expected to recover. The FTSE 250 company's share price fell by 12 per cent in early trading on Tuesday, despite shares remaining up by 57 per cent this year. Moonpig posted a pretax loss of £33.3m for the six months to 31 October, 2024, compared to a profit of £18.9m during the same period last year. The loss was attributed to a £56.7m goodwill impairment related to its experiences business, which partners with brands such as Slug and Lettuce, Hello Fresh and BrewDog, as reported by City AM. The firm cited "challenging trading conditions" and "trading conditions remain challenging with significant macroeconomic headwinds" impacting the unit, leading to an extended timeline for aligning experiences revenue growth with its full potential. A "transformation plan" for experiences is reportedly operationally complete and has realised over £1m in cost savings, including relocating its head office, outsourcing non-core functions and building a new leadership team. Basic earnings per share for Moonpig dropped to a negative 11.2p for the half year, compared to 4.1p a year earlier. On an adjusted basis, Moonpig’s profit came in nine per cent higher at £27.3m. The company has elevated its medium-term forecast for adjusted pre-tax earnings (EBITDA) margin to between 25 and 27 percent, up from the previous range of 25 to 26 percent, an uplift attributed to "continued growth of high-margin revenue streams such as plus subscription fees" Moonpig recorded a revenue of £158 million for the six months, marking an increase of 3.8 percent year-on-year. The postal card company, along with its Dutch counterpart Greetz which was acquired in 2018, registered approximately 200,000 new active customers during the half-year period, taking the total to 11.7 million. "Moonpig’s performance has been underpinned by robust growth in order volumes, powered by our multi-year investments in technology and innovation and the structural market shift to online," commented Nickyl Raithatha, Chief Executive of Moonpig.

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Industry Professionals Decry Cancellation of Extra Bank Holiday in 2025

A recent announcement from Number 10 has confirmed that the proposed extra bank holiday in 2025 has been cancelled. Initially, there were speculations that an additional day off would be added to commemorate the conclusion of WWII, but this has been officially declared as not happening. Leaders in the UK's hospitality industry have expressed their disappointment with the government's choice to abandon the extra bank holiday. They argue that such days are crucial for generating additional revenue in their sector. Their sentiments mirror those from 2022, advocating for the permanent inclusion of an extra bank holiday to celebrate the late Queen's Platinum Jubilee. Martin Williams, a former figure in the M Restaurants and Gaucho group, has described the decision to cancel the 2025 holiday as "missed potential." Williams stated: "The additional bank holiday would have been a vital stimulus for the hospitality sector amidst the economic challenges posed by the recent budget. Local pubs and independent eateries would have greatly benefited from it—a missed opportunity indeed." A representative from UKHospitality told City AM: "Bank holidays are peak times when people in Britain prefer to dine out or take a mini-break, which naturally leads to an increase in sales for hospitality businesses. As the industry grapples with rising costs, high-demand periods like bank holidays, Easter, and summer vacations become even more significant for driving sales." A spokesperson for the Campaign For Real Ale added: "Bank holidays are golden opportunities for the beer and pub sector. They offer an additional day of support for public houses, social clubs, and taprooms seeking to enhance their business." "The pub industry continues to face financial hurdles, including soaring energy bills and escalating costs. CAMRA’s data indicates that pub enterprises are experiencing unprecedented turnover rates and are still confronting a severe decline in the number of licensees able to maintain their operations in the UK. “Public houses are essential for community unity, offering inviting spaces for social engagement and aiding in the fight against loneliness. They remain central to our neighborhoods, and bank holidays are an excellent occasion for people to gather at their local pub to enjoy a pint with loved ones.” The economic impact of additional bank holidays is significant, with most of the private sector ceasing operations for an extra day. Studies suggest that an extra bank holiday could cost the UK economy approximately £2.4 billion. A spokesperson for Number 10 remarked: "The 80th anniversaries of VE and VJ Day will be monumental occasions for our nation, as we unite to honor the memories of those who served and the legacy they have left us. "We are dedicated to commemorating these significant national events with the appropriate respect, which is why we have allocated over £10 million for events to mark these anniversaries.”

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