Gordon Ramsay says tax changes will make restaurants ‘lambs to the slaughter’ | Gordon Ramsay
Celebrity chef Gordon Ramsay has accused the government of creating a culinary nightmare for restaurants across the country and said tax changes would make hospitality businesses “lambs to the slaughter”.
Ramsay, whose company operates 34 restaurants in the UK including Bread Street Kitchen, Pétrus and Lucky Cat, said the industry was “facing a bloodbath”. Restaurants are closing daily, he said, as a result of rising energy, staff and material costs and little growth in consumer spending, as well as rising business rates.
“I’ve never seen it this bad,” Ramsay told the Standardnews website. “When I look at April, when the budget measures will come into effect, I think that those of us who are hospitable are lambs to the slaughter.”
He said the fact that businesses were still recovering from the Covid-19 pandemic, which saw many restaurants forced to close for months as part of a government-imposed quarantine, meant the situation was even worse than the 2008 financial crisis.
“We are drowning,” said the restaurateur, whose business has attracted great attention. Operating loss despite increased sales in 2024newest accounts available. “We need more oxygen; a 20% or 25% reduction in rates.”
Ramsay’s comments came after chancellor Rachel Reeves said this month she was considering measures to support pubs following criticism of changes to the budget for business rates that replaced generous Covid support measures with new lower discounts, just as many businesses face increases linked to the revaluation of their properties.
However, Reeves said at the World Economic Forum in Davos this week that the support package he planned would not include the accommodation sector.
While many major retailers have seen bills remain flat or falling, trade body UKHospitality predicts rising interest bills will lead to the closure of an estimated 963 restaurants, 574 hotels and 540 pubs this year unless the government provides hospitality-wide relief.
The government has provided billions of pounds in support to help those facing huge bill rises this year, but Ramsay said changes to rates should be implemented more slowly. “The problem is that the spikes are coming so quickly, at one of the worst possible moments,” he said.
He said the government needed to consult the industry more about its plans and consider in advance what its actions would lead to.
Rises in the cost of living mean it is difficult to pass on higher costs to customers, with many households giving up on treats such as eating out and going to the pub as they spend more on household bills and food.
“Customers are also at breaking points,” Ramsay said.
He said that difficult business conditions also deter entrepreneurial chefs from opening new restaurants.
“We will all miss out on a generation of independent chefs and independent restaurants. Everyone loses. The government’s plans will definitely not work, I promise you now,” he said.
