The head of a major British pub and brewing company has criticised the Government’s economic approach, warning that rising costs and tax changes are placing increasing pressure on businesses.
Jonathan Lawson, who leads Butcombe Group and oversees more than 130 pubs, bars and inns across southern England, said planning for the year had already been difficult before global events pushed energy costs higher.
He said: "The Government is not listening, and we need to be very clear about this."
Mr Lawson accused ministers had failed to engage with business concerns, particularly around business rates and wider fiscal pressures affecting the sector.
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The financial impact on the company has been significant, with Mr Lawson stating that national insurance increases alongside above-inflation rises in the minimum wage reduced profits by more than £2million last year.
He told the BBC: "This year was quite difficult for us to plan already."
Despite reporting a strong performance in the previous year and continuing to invest in operations, he said the cumulative effect of policy changes has created uncertainty.
Mr Lawson said: "The rising costs and tax base that this Government and previous governments have inflicted on business and on our sector in particular make it very difficult for us to have confidence around investment and employment growth."
Butcombe boss Jonathan Lawson criticises Labour over taxes and rising business costs
|GETTY
Recent increases to the minimum wage have added further pressure, particularly for younger workers.
An 8.5 per cent rise for those aged 18 to 20 has taken hourly pay to £10.85, contributing to a broader increase of 26 per cent since Labour took office as part of plans to align pay with workers aged 21 and above.
Concerns have been raised by business leaders that such increases could affect hiring decisions, particularly as youth unemployment has reached its highest level in 11 years.
The policy has prompted debate over the balance between improving pay and maintaining employment opportunities for younger workers.
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Butcombe Group chief says wage hikes and tax changes are damaging investment
|Butcombe group
Mr Lawson also dismissed the significance of recent business rates relief, arguing that the savings did not offset wider cost increases.
He said: "They have made a big deal out of what in context is a small amount of money for our business."
The Chancellor’s revisions to business rates delivered a saving of £150,000 for the company, which Mr Lawson said was limited in comparison to broader financial pressures.
He also questioned the Government’s interpretation of recent economic data, including figures showing 0.5 per cent growth in February.
Mr Lawson said: "We are always optimistic. But I think the Government's narrative at the moment that the latest GDP figures are showing signs that they are doing a good job, I would challenge that."
Expectations that ministers would reform business rates for the hospitality and retail sectors have yet to be met, according to Mr Lawson, who said this continued uncertainty is affecting long-term planning.