The renowned celebrity chef Gordon Ramsay has launched a scathing attack on the UK government's forthcoming tax changes, warning that they will turn hospitality businesses into 'lambs to the slaughter'. In a stark interview, Ramsay highlighted the severe pressures facing the restaurant industry, which he describes as 'facing a bloodbath' due to escalating costs and inadequate support.
Ramsay's Dire Warning for Hospitality
Gordon Ramsay, whose company operates 34 restaurants across the UK including popular venues like Bread Street Kitchen, Pétrus, and Lucky Cat in Bishopsgate, London, expressed deep concern over the government's plans. He emphasised that restaurants are closing daily, burdened by rising business rates on top of soaring energy bills, staffing expenses, and ingredient costs, with minimal growth in consumer spending to offset these challenges.
'I've never seen it so bad,' Ramsay told the Standardnews site. 'When I look ahead to April, when the budget measures come in, I think those of us in hospitality are lambs to the slaughter.' He pointed out that the industry is still recovering from the devastating impacts of the Covid-19 pandemic, which forced many establishments to shut down for months during government-ordered lockdowns, making the current situation even more precarious than after the 2008 financial crisis.
Financial Struggles and Calls for Relief
Despite increasing sales in 2024, Ramsay's business reported an operating loss, underscoring the financial strain. 'We're being suffocated,' he said, advocating for a reduction in rates of 20% or 25% to provide much-needed relief. He criticised the government for implementing rate rises too quickly, at what he calls 'one of the worst possible moments', and urged for more gradual changes and better consultation with the industry.
Ramsay's comments come in response to Chancellor Rachel Reeves' recent statements. While Reeves mentioned considering measures to support pubs, she clarified that her planned support package would not extend to the wider hospitality sector. This has sparked fears, with trade body UKHospitality forecasting that increased rates bills could lead to the closure of an estimated 963 restaurants, 574 hotels, and 540 pubs this year without broader assistance.
Broader Economic Impacts
The chef also highlighted how the cost-of-living crisis is exacerbating the problem. Many households are cutting back on discretionary spending, such as meals out and pub visits, as they allocate more funds to essential bills and food. This makes it difficult for restaurants to pass on higher costs to customers, who Ramsay notes are 'at their breaking point too'.
Furthermore, Ramsay warned that the challenging business environment is deterring entrepreneurial chefs from opening new independent restaurants. 'We're all going to miss out on a generation of independent chefs and independent restaurants. Everyone loses. The government's plans simply will not work, I promise you now,' he asserted, calling for more foresight and collaboration in policy-making to prevent long-term damage to the culinary landscape.
