The founder of Leon has accused Labour of “totally killing the restaurant industry” through rising taxes and costs. John Vincent made the comments in an interview with Times Radio, warning: “The high street is dead.”“I spoke to the guy that owns one of the biggest competitors of Leon. He said restaurants are done. Everyone knows restaurants are done,” he said.Mr Vincent argued the sector’s struggles were not being driven by consumer behaviour.
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“This is not the market that’s doing this. This is the Government. It’s not the consumer that doesn’t want to eat in restaurants. It is the Government who is totally killing the restaurant industry.”Industry data shows more than 1,000 restaurants are closing each year across Britain.A wider survey of over 20,000 businesses suggests two‑thirds of hospitality firms expect to cut jobs following April’s tax increases, while around one in seven anticipate closing entirely.Employers have faced rising costs from increases to the national minimum wage, the National Living Wage, National Insurance contributions and pension auto‑enrolment.The British Retail Consortium (BRC) estimates higher NI and wage increases have added £5billion a year to business costs.Mr Vincent sold Leon to the Issa Brothers for £100million in 2021, before buying it back for between £30million and £50million.The company entered administration weeks later, with Quantuma appointed as administrator, and subsequently confirmed the closure of 20 restaurants.Pret A Manger offered roles to some affected staff.LATEST DEVELOPMENTSRachel Reeves’s pensions inheritance tax raids force savers to withdraw £2.3billion from retirementsSavings alert: Bank offers £275 free cash plus 4.40 per cent interest rate as new tax year beginsHomeowners hit with £27,000 council tax bills under new 500 per cent premiumHe said post‑pandemic working patterns had hit the business, while tax increases had placed “further strain on the business”.“I have people calling me in tears every day saying they’ve owned restaurants for 40 years and now they’re going under,” he added.A Labour spokesperson defended its economic approach, saying ministers have “the right economic plan”.They pointed to a £4.3billion package to limit business‑rates increases and confirmed corporation tax would be capped at 25 per cent.“We’re reforming business rates to back hospitality,” the spokesperson said, adding that the Government is “cutting red tape and taking action on the cost of living to boost the sector”.Officials said increases to the national minimum wage will benefit more than 200,000 young workers, and noted that employer National Insurance contributions are lower for workers under 21.Labour has ruled out reversing the policy changes, describing them as manifesto commitments.
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