The co-founder of popular Caribbean restaurant chain Turtle Bay has publicly criticised Chancellor Rachel Reeves and the Labour government, blaming a recent tax increase for pushing the business into a significant loss.
A Sharp Turn into the Red
Turtle Bay slumped to a pre-tax loss of £10.1 million for the financial year ending 30 March 2025. This stark reversal comes after the Bristol-headquartered company reported a profit of £1.8 million in the previous 12-month period. The business also saw its turnover fall from £93.6 million to £84.3 million, according to newly filed accounts at Companies House.
In a statement signed by the board, co-founder Ajith Jayawickrema pointed a direct finger at government policy. He stated that the new Labour government has been "unhelpful with their raid on employers' National Insurance," identifying it as a key factor in the disappointing results. The accounts were signed off in September 2025 but published in January 2026.
Hospitality Sector Under Pressure
Jayawickrema outlined a challenging landscape for the hospitality industry, which employs around three million people nationally. He cited fierce competition from new market entrants, rising supplier costs due to market uncertainty, and some of the world's highest energy prices in Britain.
"With these headwinds, our results this year are lower than we expected," he admitted. However, he noted a silver lining: "We remain ahead of our pre-pandemic sales, something many are not."
During the difficult year, the chain, which is backed by private equity firm Piper, took decisive action to shore up its finances. It closed three loss-making sites and made significant accounting adjustments, including a £5.4 million impairment charge on the value of its portfolio and a £900,000 increase to its provision for onerous leases.
Budget Relief on the Horizon
The Turtle Bay founder may have since found some cause for optimism following Chancellor Reeves' Budget last year. In that announcement, Reeves pledged to permanently lower business rates for more than 750,000 retail, hospitality, and leisure properties in England from April 2026.
Despite this future relief, Jayawickrema emphasised the immediate strain caused by the National Insurance change, stating, "Our sector has been one of the worst impacted by the change." The criticism highlights the ongoing tension between government fiscal policy and the survival of high-street businesses facing soaring operational costs.
