Ian Leigh, managing director of Birmingham’s popular Chaophraya Thai Restaurant, delivered a blunt message to Chancellor Rachel Reeves and Prime Minister Keir Starmer, highlighting the dire state of the hospitality industry. In a heartfelt video, Leigh revealed that one of Chaophraya’s locations in Cambridge has been forced to close, resulting in the loss of 14 jobs.
Leigh criticized recent Labour policies, describing them as “a dagger to our heart,” specifically targeting the rise in national insurance contributions. He argued that these measures unfairly impact young, part-time workers and an already struggling sector rather than addressing those most able to shoulder the burden.
Leigh called on the government to reduce the VAT rate for the hospitality industry, pointing out that countries like France, Germany, Spain, and Ireland have VAT rates of 10% or less in this sector. He emphasized that a lower VAT rate would not only help businesses survive but would also boost employment among young people and invigorate the UK economy.
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Leigh’s message resonated with many as the hospitality industry continues to face challenges from soaring utility bills, rising food costs, and razor-thin profit margins.