Chefs in tax help plea for bars and restaurants

Two top chefs have warned of major hospitality job losses unless the government acts to bring down their tax bills.

Kenny Atkinson and Cal Byerley, from Michelin-starred House of Tides in Newcastle and Pine in Northumberland, fear business rate hikes will lead to more Tyneside venue closures.

Atkinson warned many businesses were "on their last legs" and increasingly impacted by higher bills and minimum wage increases.

While a climbdown on rises to business rates bills faced by pubs is expected, Chancellor Rachel Reeves said she was working with the sector but "temporary support cannot continue forever".

The hospitality sector is facing a business rate revaluation and the removal of Covid-era relief.

It has also seen an increase in the minimum wage and pension and National Insurance contributions.

Last year a number of Tyneside venues, including Earl of Pitt Street, Leila Lily's and Prohibition, closed.

Byerley, chef-owner of the acclaimed restaurant in East Wallhouses, accused the government of "attacking small hospitality businesses on an unprecedented scale".

He called for the chancellor to slash the VAT rate on hospitality, which currently stands at 20% - compared to 10% in France and Spain, and 7% in Germany.

The chef added: "Pubs, cafes and small restaurants are expected to face a 15% rise in business rates this year.

"Where, exactly, is this money supposed to come from?"

Atkinson, who opened House of Tides on Newcastle's Quayside in 2014 and nearby Solstice in 2022, said the tax burden was making businesses unsustainable.

He said: "Everyone goes to France or Spain or Greece and says how much cheaper the beer and food is - that is because the taxation on businesses in this country is just not in line with what it should be."

Speaking to the Local Democracy Reporting Service on a visit to Darlington last week, Reeves said the Treasury understood rates uplifts were "too soon" for some businesses and suggested there could be support for the sector beyond just pubs.

She said there was already £4bn of support announced in the budget as Covid help comes to an end.

"But I recognise that for some pubs and other businesses those increases in business rates are coming too soon, so we are working with the sector and will set out detailed plans," Reeves said.

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