The renowned celebrity chef Gordon Ramsay has launched a blistering attack on the UK government's forthcoming tax changes, warning they will turn hospitality businesses into "lambs to the slaughter" and create a devastating "bloodbath" across the sector.
A Perfect Storm of Pressures
Ramsay, whose restaurant empire includes 34 UK establishments such as Bread Street Kitchen, Pétrus, and the Bishopsgate-based Lucky Cat which opened last year, described the current climate as the worst he has ever witnessed. He highlighted that restaurants are closing daily under the crushing weight of multiple pressures.
"I've never seen it so bad," Ramsay told the Standardnews site. "When I look ahead to April, when the budget measures come in, I think those of us in hospitality are lambs to the slaughter."
The Crippling Cost Burden
The chef pointed to a perfect storm of rising business rates, soaring energy costs, increased staffing expenses, and higher ingredient prices, all compounded by stagnant consumer spending. This comes as businesses are still struggling to recover from the prolonged closures enforced during the Covid-19 pandemic lockdowns.
Ramsay argued the situation is now more severe than in the aftermath of the 2008 financial crisis. "We're being suffocated," he stated, revealing that his own business posted an operating loss in 2024 despite increased sales. "We need more oxygen – a reduction in rates of 20% or 25%."
Government Measures Fall Short
Ramsay's comments follow Chancellor Rachel Reeves' recent announcement that she is considering support measures for pubs, following widespread criticism of the budget's business rates changes. These reforms replace previous generous Covid support schemes with new, lower discounts, coinciding with rate increases linked to property revaluations.
However, Reeves indicated at the World Economic Forum in Davos that any planned support package would not extend to the wider hospitality industry, leaving restaurants and hotels exposed.
Forecast of Widespread Closures
The trade body UKHospitality has issued a stark warning, forecasting that without sector-wide government assistance, increased rates bills could lead to the closure of approximately 963 restaurants, 574 hotels, and 540 pubs this year alone.
While the government has implemented several billion pounds of support for businesses facing significant bill increases, Ramsay contends the rate rises are being introduced too rapidly. "The trouble is that the rises are coming in too quickly, at one of the worst possible moments," he emphasised.
Broader Economic Impact
The chef warned that the government's approach fails to consider the broader economic consequences. With households cutting back on discretionary spending like meals out and pub visits due to the cost-of-living crisis, restaurants cannot simply pass increased costs to customers.
"Customers are at their breaking point too," Ramsay noted, highlighting the delicate balance businesses must maintain.
Threat to Future Innovation
Perhaps most concerning, Ramsay suggested the difficult conditions are deterring entrepreneurial chefs from opening new establishments, threatening the future vitality of the UK's culinary scene.
"We're all going to miss out on a generation of independent chefs and independent restaurants. Everyone loses," he predicted. "The government's plans simply will not work, I promise you now."
Ramsay called for more meaningful consultation with the industry and greater foresight regarding the consequences of policy decisions, arguing that the current trajectory will damage not just businesses, but the cultural and economic fabric of communities nationwide.
