Popular London restaurant forced to close due to Rachel Reeves's 'National Insurance cost increases'

A spokesperson for Margot shared: "Thanks for being part of our story.

"Dear friends and valued guests, after much reflection, and as a result of the substantial business rate and National Insurance costs imposed on us in this year's Budget, we have made the decision to close Margot.

"Our final day of service is June 28, 2025. We are deeply grateful for the support, memories and meals we've shared with this wonderful community.

"Thank you for allowing us to serve you. Your loyalty and encouragement have meant everything to us. Though this chapter is ending, we have proud of what we have built and we'll carry these memories with us always."

In last year's Autumn Budget, Reeves announced plans to raise the National Insurance rate paid towards contributions made by employers and hiked the National Living Wage.

From April 2025, businesses have now been paying a 15 per cent rate in National Insurance contributions and workers on the national minimum wage are now on £12.21 per hour; a 6.7 per cent increase.

Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.

However, the Chancellor also announced a 40 per cent relief on business rates for the retail, hospitality and leisure industry in 2025/26, up to a cap of £110,000 per business, during her Autumn Budget.

Despite this intervention, recent figures from the Office for National Statistics (ONS) found that the UK's unemployment rate reached a four-year high in the three months to April.

Analysts have cited Reeves's policy announcements in last year's fiscal statement as being partially to blame for payrolls shrinking by 164,000 over the period.

Earlier this year, trade body UKHospitality hit back at the changes to National Insurance, citing the impact from the high number of workers working part-time or on a flexible basis.

According to the organisation, more than 774,000 workers will be newly eligible for employer National Insurance contributions which is expected to cost the sector £1billion.

The group warned that the hospitality sector is already facing £2.4billion in costs from April 2025, which could see businesses being forced to cut jobs, raise prices or shut down.

LATEST DEVELOPMENTS:

• Pension crisis looms as millions of over 60s face 'carrying mortgage debt into retirement'
• Rachel Reeves under fire for unemployment rise as National Insurance raid 'now biting' employers
• Bank of England under fire as economy slows and rate cuts remain uncertain

Kate Nicholls, the chief executive of UKHospitality, said at the time: "The change to employer NICs is one of the most regressive tax changes ever.

"The scale of this change is unprecedented, bringing three-quarters of a million people into this employer tax for the first time, and the extent of the impact will be enormous.

"This tax is already forcing businesses to abandon investment, change recruitment plans, reduce headcounts and increase prices to cope with these cost increases."