A senior government adviser to Chancellor Rachel Reeves has provoked widespread anger after declaring that Britain "doesn't need any more restaurants," arguing the country must shift its economic focus away from hospitality and retail toward high-tech industries.
Adviser's Controversial Comments on Economic Resilience
Alexandra Depledge, who serves as the government's entrepreneurship adviser, made the inflammatory remarks during an interview with Insider Media, stating the UK "lacks economic resilience" due to excessive reliance on hospitality and retail businesses. "We don't need any more restaurants. I'm not anti-hospitality but that's not where my efforts are," she asserted.
The technology entrepreneur and founder of architectural firm Resi, who first met Rachel Reeves in 2022 and was appointed as an adviser in 2025, contended that government investment should prioritise tech startups in cutting-edge sectors like quantum computing and artificial intelligence rather than supporting traditional hospitality ventures.
Hospitality Sector Reacts with Fury and Disgust
Depledge's comments have ignited fury across the hospitality industry, which has been struggling with hundreds of pub and restaurant closures following the Chancellor's recent tax increases. Industry leaders had previously warned that without adequate support, six hospitality venues could close daily over the next year, amounting to more than 2,000 premises.
Sacha Lord, Chair of the Night Time Industries Association, described Depledge's remarks as "disgusting," stating: "The industry has been wondering why we are just being ignored - she has answered that question. They are not interested in us."
Lord strongly rejected Depledge's position, emphasising: "I completely push back on it. I am pretty sure most people want to see the survival of the British high street, and that is where I was hoping Labour would try to help maintain and support."
Economic Impact and Government Policy Concerns
The hospitality leader highlighted the sector's substantial economic contribution, noting it represents the UK's fifth largest industry and third largest employer, while being the biggest employer among small and medium-sized enterprises in the private sector. "It is alarming that she has this opinion," Lord added, referencing recent government measures that have increased financial pressure on businesses.
Last month, Lord told The Mail that he believed the Labour government had been "worse for pubs than the pandemic," a sentiment reinforced by Depledge's comments. "This absolutely highlights it, we were hoping for something next week in the spring statement. Now we are expecting absolutely nothing," he stated. "The government has turned its back on us. It is now survival of the fittest."
Budget Measures and Industry Consequences
Depledge was appointed as entrepreneurship adviser last June, ahead of the Autumn budget that introduced controversial changes affecting hospitality businesses. The November Budget scrapped the 40 percent relief on business rates that had been implemented during the pandemic, resulting in substantial increases for many establishments.
Pubs now face an average business rates rise of 76 percent over three years, while hotels confront increases of 115 percent. Pub landlords reported to The Mail in January that they are already contemplating closure and experiencing sleepless nights over financial figures that "just don't add up."
Political Divisions and Policy Alternatives
Two weeks ago, senior Labour figures Angela Rayner and Andy Burnham diverged from the government's position on hospitality, suggesting the Prime Minister should implement VAT cuts to alleviate pressure on the sector. Lord acknowledged that VAT reductions were "what the sector needed" but expressed pessimism about their implementation while Rachel Reeves remains Chancellor.
Adviser Issues Apology for Causing Concern
Following the backlash, Alexandra Depledge has issued an apology for "any upset caused" by her comments. In a statement, she clarified: "I recognise that some of the remarks reported from this interview have caused concern, particularly among those working in hospitality. That was not my intention, and I'm sorry for the upset caused."
Depledge emphasised her personal experience in the industry, having worked in hospitality from age 13 in various roles including waitress, kitchen staff, and bartender. "I have nothing but respect for the sector and the people who work incredibly hard within it," she stated.
The adviser concluded by acknowledging the hospitality sector's vital role in the economy and local communities, while maintaining her focus on creating "high-growth businesses across the whole UK" to generate "better-paid, more secure jobs for the future alongside the jobs we have today."
