Gordon Ramsay warns of ‘bloodbath’ as Rachel Reeves tax hikes threaten hospitality collapse

Mr Ramsay said: “I’ve never seen it so bad."

Writing in The Standard, the restaurateur painted a bleak picture of what lies ahead when the new measures come into force in April.

He wrote: "Restaurants are already closing every other day.

“It devastates me because it seems no one in power is thinking ahead and considering where we’ll be in five years. We’re being suffocated.”

Figures from UK Hospitality underline the scale of the crisis, revealing that 9,000 jobs were lost in the sector in December alone, the month immediately following the Budget announcement.

Mr Allen Simpson, chief executive of UK Hospitality, warned looming business rates rises are compounding an already dire situation.

Mr Simpson said: “Looming business rates increases are only making things worse, and the Government needs to act urgently to bring forward a hospitality-wide solution that averts those hikes."

“If it doesn’t, we will only see job losses and business closures accelerate.”

Criticism intensified this week after the Chancellor confirmed pub relief would be limited rather than extended across the wider hospitality sector.

Mr Ramsay said the damage was already visible in his own neighbourhood.

“I live in Wandsworth and you can’t walk ten metres without seeing another closure, another boarded-up front,” he wrote.

He also drew comparisons with the Government’s handling of proposed inheritance tax changes for farmers, which triggered mass protests in London.

“Look at what happened with the farmers, who brought London to a standstill,” he said. “Look at the U-turn the Government had to make, it had egg on its face.”

The chef accused ministers of repeating the same mistakes by failing to consult those working on the ground before introducing sweeping policy changes.

The hotel industry has echoed the warning, with Rocco Forte, chairman of Rocco Forte Hotels, branding the proposed rates increases “completely ridiculous”.

“It is deeply disappointing that the Government is not listening to the hospitality sector,” Mr Forte told the Mail. “Many establishments will simply go out of business.”

Independent retailers have also raised alarm.

Mr Andrew Goodacre, chief executive of the British Independent Retailers Association, argued singling out pubs for relief ignores the broader crisis facing high streets.

“All high street businesses are facing significant increases in their rates liability,” he said, questioning whether the Government truly supports town centres if only one sector is prioritised.

He pointed to closures at Poundland, River Island and Russell & Bromley as evidence of the scale of the problem.

Bookshops have likewise demanded equal treatment, warning that independent retailers are being pushed to breaking point.

Backstory London owner Tom Rowley revealed his business rates bill has surged by 163 per cent over two years to £8,865, criticising the complexity of the system and remarking that “James Joyce novels are easier to understand than this”.

Meanwhile, Cleeve Bookshop owner Will Williams said his Cheltenham store’s rateable value has risen by more than £3,000, raising serious questions about the long-term viability of bricks-and-mortar bookshops.

Mr B’s Emporium owner Nic Bottomley described the Budget as “sneaky”, warning that businesses in the £15,000–£51,000 rateable value bracket are facing a 27.6 per cent year-on-year increase in business rates.

Music venues and trade bodies have also intensified their criticism of Chancellor Rachel Reeves’ tax policies, particularly plans to reduce business rates relief and introduce a fresh revaluation of property taxes from April.

The O2 Arena in London has warned it faces a £1.8 million increase in its business rates bill, taking the total to £8 million next tax year, and has formally written to the Treasury stating it cannot absorb the additional costs.

Meanwhile, Manchester’s Co-op Live arena has reported a projected increase of £433,000, describing the rise as “eye-watering” and financially unsustainable.

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