Kent's hospitality industry fears 'last straw'

The hospitality industry has warned rising costs, wages and business rates are forcing pubs, clubs, bars and restaurants in Kent to make difficult decisions.

Some told BBC Radio Kent the impact of the increase in national insurance could hit them harder than the pandemic.

One restaurant in Chatham said it had to close because of mounting costs and that the tax change was "the last straw".

From April, the rate employers pay will rise and the threshold for paying tax on each salary will fall. The government said this would raise £25bn.

Anna Carpenter, who owns Cafe No.35 in Canterbury, said the increase in minimum wage and national insurance would have a "huge impact".

"As an industry, we are really struggling," she said.

"I'd love a U-turn but I don't think there will be one and I fear for a lot of small businesses.

"As a small business, I don't have that support to subsidise those extra costs - it could mean that people can't afford to keep some workers on."

Copper Rivet Distillery co-founder Matthew Russell told the BBC he was being forced to close the Pumproom restaurant in Chatham because of spiralling costs.

"The national insurance changes were the last straw," he said.

"We won't be the only business facing this. Lots of the hospitality sector will be doing their maths now, desperately trying to find out how they can recover that."

He said he would need to increase turnover or prices by 15% to cover the extra costs.

Philip Thorley, owner of Thorley Taverns, said: "The changes to national insurance are financially worse for hospitality and the high street than Covid.

"The changes are catastrophic for us and the employment of young and part-time workers."

He added that, with 18 venues and 400 staff, the changes would cost him £8,000 a week from 1 April and called for the decision to "be reconsidered immediately".

The Government has been approached for comment.

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