Sir Keir Starmer's attempts to engage with social media influencers and local news outlets at a Downing Street reception this week took an unexpected turn when he was directly challenged over what one attendee described as 'diabolical' tax policies harming small enterprises.
Confrontation in Number Ten
The Prime Minister hosted the event on Monday evening to mark the Government's Pride in Place programme, which is channelling up to £5 billion into local communities nationwide. However, the gathering of approximately one hundred content creators and online publishers became the setting for a pointed exchange about the economic pressures facing Britain's small business sector.
Amy Gastman, founder of two London-based food businesses, used her opportunity to speak with Sir Keir to deliver a stark message. Sharing images and details of their conversation on her 'eatbyamy' TikTok account, Ms Gastman documented her direct appeal to the Prime Minister.
'Impossible to Thrive' Under Current System
'I'm Amy and I own two businesses in London,' she recounted telling Sir Keir. 'I care deeply about the survival of small businesses and you should too!!!! Business rates, national insurance contributions, and some of the highest VAT in Europe make it impossible for small businesses to thrive.'
In a subsequent Substack article published on Tuesday, Ms Gastman elaborated on her motivations for speaking out during what she described as her 'one-on-one time' with the Prime Minister. 'I wanted to speak to Sir Keir Starmer because I care deeply about the future of small businesses in this country,' she wrote. 'What's currently happening to us is, frankly, diabolical.'
She detailed specific concerns: 'High business rates. High VAT. Rising national insurance contributions. None of this encourages growth. It discourages it. And the knock-on effects are real: fewer independents, fewer jobs, more closures, less diversity on our high streets.'
Lifelong Labour Voter Reconsidering Support
Perhaps most striking was Ms Gastman's revelation about her political allegiance. 'I've been a Labour voter my entire life, my auntie is even a Labour councillor, but for the first time that is looking to change,' she stated in her social media posts.
She explained this potential shift stems from shared struggles among business founders: 'Myself and a lot of my fellow founders are struggling, and we need change. Not just for our own personal gain, but for the economy to thrive.'
Ms Gastman described making a conscious decision to move beyond politeness during the encounter. 'I knew this was a cause worth pushing for. And I also knew that if I defaulted to being polite, agreeable, and unobtrusive, I'd leave the room having achieved nothing. So I made a deliberate choice to put that instinct aside.'
Broader Business Backlash Against Tax Changes
This confrontation comes amid growing discontent from industry leaders and trade groups regarding recent adjustments to business taxation. The Government currently faces significant criticism over changes to business rates scheduled for implementation in April.
These follow the substantial £25 billion impact on firms resulting from Chancellor Rachel Reeves' first Budget in October 2024, which included increases to employers' national insurance contributions.
Policy Changes Drawing Fire
In her most recent Budget announcement in November, Ms Reeves did reduce the multiplier used to calculate business rates. However, she simultaneously confirmed the termination of a 40 per cent discount for hospitality, retail, and leisure firms beginning this April.
These measures will be replaced by transitional relief arrangements, which are planned to be phased out completely by April 2029. Additionally, the business rates changes incorporate new property valuations for 2026, resulting in a notable increase in the average assessed value of hospitality businesses including hotels and pubs.
Business representatives across sectors have issued warnings that these tax adjustments could precipitate widespread closures and job losses throughout the United Kingdom. In response to mounting concerns, particularly from the pub industry, the Government has signalled intentions to provide additional financial support in the coming weeks.
Nevertheless, other sectors such as hotels have expressed fresh anxieties about potentially missing out on any newly announced relief measures.
Political Reactions
Conservative voices were quick to capitalise on the incident. Senior Tory MP Andrew Griffith, who serves as shadow business secretary, commented to the Daily Mail: 'The Prime Minister goes to extraordinary lengths to avoid meeting the small businesses his policies are killing. So full marks to Amy for bursting his bubble and confronting him with the truth.'
When approached for further comment by the Daily Mail, Ms Gastman declined to elaborate beyond her published remarks. Downing Street has also been contacted for its response to the reported exchange.
The episode highlights the ongoing tension between the Government's fiscal policies and the concerns of small business owners, suggesting that even carefully orchestrated political events can become forums for substantive policy challenges.
