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 .
"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 º£½ÇÊÓƵ 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.
Kerridge asserted his continued support for the Labour party, indicating that they were the appropriate choice to mend the country's "broken infrastructure". However, he added: "But I do feel that the answer at the minute is not by punishing or making life harder for small businesses."
