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Are Reeves and Starmer Killing UK Restaurants?

2 May 2026
in Business
Reading Time: 4 mins read
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Are Reeves and Starmer Killing UK Restaurants?
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There is a particular kind of silence that descends on a once-busy restaurant when last orders have come and gone, the candles have guttered, and the chef is out the back having a cigarette and contemplating bankruptcy. It is the sound of a small dream dying. And right now, across Britain, that silence is becoming deafening.

I have just returned from dinner at a perfectly nice neighbourhood bistro in west London, where the owner, a man who quit a comfortable banking job to chase the romance of feeding people, confessed somewhere between the burrata and the lamb that he is closing in September. Not because nobody comes. They come. They eat. They tip. They order the second bottle. But the maths, he sighed, no longer mathses.

The story is the same in every postcode. UKHospitality reckons we lost roughly one pub or restaurant every single day last year. The Hospitality Rising figures are grimmer still: chefs walking away, dining rooms going dark, sites being flogged off to coffee chains and vape shops. And yet our Chancellor has decided that what this fragile, brilliant, world-beating sector really needs is a thumping great kicking.

Let us count the bruises. From April 2025, employer National Insurance jumped to 15 per cent. The threshold at which businesses begin paying it was slashed from £9,100 to £5,000, which is a fancy Treasury way of saying that every waiter, every glass-polisher, every Saturday-morning kitchen porter is now considerably more expensive to employ. Throw in the National Living Wage rising to £12.21 an hour, business rates relief shrivelling from 75 per cent to a measly 40 per cent, and a stubborn refusal to cut hospitality VAT to anything resembling our European competitors, and you have what UKHospitality calculated as an additional £3.4 billion annual hit on the sector. Three-point-four. Billion. With a B.

To which Rachel Reeves and Sir Keir Starmer have essentially shrugged and said: tough. Get on with it. Be more productive. Use AI. Yes, really, the Prime Minister actually suggested artificial intelligence was the answer to the front-of-house labour crisis. Has the man ever tried to get a chatbot to recommend the Picpoul de Pinet over the Sancerre, or to deal with a four-top of accountants splitting the bill seventeen ways?

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