Chef Gordon Ramsay has called for urgent changes to government policy on business rates, warning that proposed increases could threaten the viability of UK restaurants and pubs.
The well-known restaurateur argued that current plans on property taxation, set to take effect from April, risk causing severe damage to the hospitality sector. Ramsay’s appeal comes as businesses in the industry grapple with rising national insurance contributions and a higher minimum wage, increasing concern about the cumulative impact on their financial health.
Ramsay voices concern over rising costs
Gordon Ramsay, aged 59, has stressed that new business rates would add significant pressure to restaurants and pubs already struggling with increased staffing and operational costs.
He argued that without revision, these plans could render businesses 'lambs to the slaughter' once the measures are implemented.
The chef has insisted that the government, and in particular Chancellor Rachel Reeves, must 'water down' the effects of these tax increases, stating that failure to act could result in widespread closures across the sector.
Historical struggles in hospitality sector
Ramsay linked the current crisis to previous periods of hardship, such as the 2008 financial crash and the 2001 foot-and-mouth disease outbreak, both of which led to drastic reductions in industry revenue.
He described the outlook for the sector as the most difficult in decades, saying in an interview that he had 'never seen it so bad' since moving to London at the age of 21. Ramsay cautioned that hospitality businesses are still recovering from the effects of the COVID-19 pandemic, which left many establishments 'treading water'.
Calls for government intervention
Ramsay has called for a reduction in business rates, suggesting a cut of between 20 and 25 per cent is necessary for the sector to recover and grow. He stressed that no such rates relief has been implemented in the past five years, and argued greater support is now essential for survival.
He further stated, 'We work hard I’m not sure the Government realises how hard, to be honest. That’s likely to be because it’s not working closely enough with us.' Ramsay expressed doubt in the effectiveness of current government metrics, urging ministers to reassess their approach.
Industry reaction to proposed tax changes
Hospitality businesses, including pubs, restaurants, and hotels, have voiced alarm at the prospective increases in business rates. Industry groups argue that additional levies will discourage investment, threaten employment, and risk the closure of many venues.
Ramsay noted that other sectors, such as agriculture, have staged high-profile protests over taxation policies, leading to policy reversals. He suggested that similar intervention is needed to shield the hospitality sector.
Government’s response and wider implications
The Treasury is reportedly preparing a new support package focused on the pub industry; however, the scope of relief for the wider hospitality sector remains uncertain. Many business leaders fear that limited support will fail to address the scale of the crisis.
Ramsay urged a comprehensive review of the policy, stating, 'I don’t think the Government has thought out its policy properly; it needs to be redone, revised, and ministers need to come back with a template for a much more supportive system.'
Final Summary
Gordon Ramsay’s intervention has highlighted acute concerns about the future of the UK’s hospitality sector under rising business rates and associated taxes. Restaurateurs and pub operators face mounting financial challenges, and industry leaders are urging immediate and meaningful government support.
As the government prepares targeted packages for specific parts of the sector, uncertainty remains regarding the fate of smaller and independent venues.
Ongoing consultation between stakeholders and policymakers will be critical in determining the industry’s prospects. For tailored business rates updates and guidance, professionals can rely on platforms such as the Pie app.
