Top restaurant owner made star of BBC series warns of ‘bloodbath’ and ‘all your favourites closing down’ after tax raid
A TOP restaurant owner, made the star of a BBC series warned of a "bloodbath" and "all your favourites closing down" after the new tax raid.
Andy Jones, the founder of the London's Jones and Sons predicts the hospitality industry will be hit hard when the budget kicks in.
The former chef admitted that last December was the worst month ever for his business in its entire 12-year history.
He explained that businesses in the hospitality industry were walking a ";tight rope on a balance sheet all year round" and fears this will result in "all your favourite places closing down".
He added: "With what's going to happen this year, especially in hospitality, there is going to be a bloodbath which is going to ensue when that budget kicks in."
As part of Labour's Autumn Budget 2024, Chancellor Rachel Reeves announced the rise to employers' national insurance tax increases from 13 per cent to 15 per cent.
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The 1.2 per cent increase will impact employers with a Secondary Class 1 National Insurance contributions (NICs) liability, or with employees with earnings of at least £5,000 a year.
Foretasted to impact 1.2million employers, around 940,000 of which will see an increase to their employer NIC.
It's aim is to "help fix the foundations of the public finances and invest in public services".
However, the measure has resulted in Ms Reeves being accused of putting a “handbrake on the economy” by hiking taxes on employers.
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She said: “I am determined to go further and faster to kickstart economic growth, which is the number one priority in our Plan for Change.
“That means generating investment, driving reform and a relentless commitment to root out waste in public spending, and today I will be pressing regulators on what more they can do to deliver growth.”
But there is no indication to say the departmental budget won't be squeezed even further - as Sir Keir Starmer refuses to rule out further tax rises this year.
Speaking at a Prime Minister's Questions, Mr Starmer backed Ms Reeves in pledging the budget will be ";in place for many, many years to come".
He said: “When it comes to tax she knows very well the limits of what I can say from this despatch box but we have an ironclad commitment to our fiscal rules.
"We can’t just tax our way out of the problems that they left us…”
This came after the Tory leader Kemi Badenoch, demanded the PM guarantee no new taxes in 2025 after a turbulent week in the financial markets.
Alas, he dodged the question and insisted Labour had taken "the right and difficult decisions at the Budget".
