Rachel Reeves’s advisor says Britain ‘does not need any more restaurants’ amid hospitality tax raid
Labour’s entrepreneurship adviser has faced a backlash from hospitality leaders after stating that Britain does not “need any more restaurants”.
Alex Depledge, appointed by Chancellor Rachel Reeves, made the remarks during an interview with Insider Media discussing her advisory role.
Ms Depledge, who founded home extension company Resi UK and letting agent platform Good Lord, said: “We don’t need any more restaurants. I’m not anti-hospitality, but that’s not where my efforts are.”
Her comments prompted criticism from senior figures across the industry.
Michel Roux Jr, the Michelin-starred chef, responded on social media by suggesting Government advisers were “really not very clever”.
Sacha Lord, chairman of the Nighttime Industries Association and a former nightlife adviser to Andy Burnham, said the sector remained confused about what he described as a lack of engagement from the Chancellor.
“As a sector, we have always been completely confused as to why the Chancellor seems to be ignoring us.”
He described the National Insurance increase as a blindside and characterised business rates reform as “nothing more than a stealth tax”.
Labour’s entrepreneurship adviser said Britain does not “need any more restaurants”
|
GETTY
Mr Lord added that small and medium-sized enterprises are the largest employers within the private sector.
Publican Andy Lennox, who has previously campaigned against Labour MPs visiting his establishments, urged Ms Depledge to “think twice before using such unwise words”.
Mr Lennox questioned whether individuals without direct hospitality experience should be shaping policy affecting the industry.
The hospitality sector accounts for seven per cent of UK employment, with around 2.6 million people working in the industry.
Restaurants have asked for business rates relief
|
GETTY
That total is comparable to the retail workforce.
Both sectors have reported declining employment levels as businesses adjust to the Government’s wage tax increases.
Figures from the Office for National Statistics (ONS) show restaurant numbers fell by 1.3 per cent between 2024 and 2025, leaving 89,600 establishments operating nationwide.
Industry leaders have continued to call for further support, noting that restaurants and hotels were excluded from the Chancellor’s emergency support package for pubs.
Nigel Farage has been criticised
|
X / NIGEL FARAGEThat package introduced a 15 per cent business rates discount followed by a two-year tax freeze for eligible venues.
Ms Depledge said Government efforts should prioritise technology and growth sectors rather than hospitality and retail, with a focus on start-ups and scale-ups.
She argued that while small businesses play a significant role in the economy, “they have played the same size role for the last 50 years”.
The adviser also linked frustrations about employment opportunities to the rise of Reform UK.
Referring to the party’s leader Nigel Farage, she said: “Men who are p—– off with life turn to Nigel Farage because all the jobs they could do are gone, and we need to replace them.”
Ms Depledge added that she had found working with the Chancellor “really enjoyable.”
