Prominent British chef Gordon Ramsay has sounded the alarm on the impending crisis facing the hospitality industry, warning of a “bloodbath” following Chancellor Rachel Reeves’ tax hikes. Ramsay, who operates over 30 restaurants across the country, says the industry is in dire straits, with establishments closing daily due to rising business rates.
“The industry is facing a bloodbath. I’ve never seen it so bad,” Ramsay told the Standard. “When I look ahead to April, when the Budget measures come in, I think those of us in hospitality are lambs to the slaughter. Restaurants are already closing every other day.”
Ramsay’s comments echo the broader concerns of the industry, with the Chief Executive of the British Independent Retailers Association, Andrew Goodacre, stating that “all high street businesses are facing significant increases in their rates liability.”
The chef fears the current situation is even worse than the aftermath of the 2008 financial crisis, as businesses are still recovering from the impact of the Covid-19 pandemic, during which many restaurants were forced to close due to government-mandated lockdowns.
“With this business rates storm brewing, it’s going to be catastrophic,” Ramsay warned, adding that he has “lost confidence” in the government, particularly regarding issues with inheritance tax for farmers.
Reeves’ plans to ease the burden of business rates on pubs have been met with criticism from the wider hospitality sector, which faces increasing tax bills in April. The Chancellor has insisted that her support package will not extend to the “wider hospitality sector,” a decision that has drawn the ire of hotel and restaurant owners.
As the industry braces for the impending changes, Ramsay’s dire prediction of a “bloodbath” underscores the gravity of the situation facing the hospitality sector in the months ahead.
