The head of a major Thai restaurant chain has launched a scathing attack on the Prime Minister and Chancellor, holding them directly responsible for shutting down his Cambridge venue and making 14 staff redundant.
Ian Leigh, managing director of Thai Leisure Group, said that the company could no longer absorb the cumulative impact of rising costs.
“As a direct result of your policies, we’re having to shut our wonderful restaurant here in Cambridge,” he said, calling Labour’s approach “a dagger to our heart”.
He also accused ministers of targeting “young people, part-time people and a sector on its knees” rather than those with greater financial resources.
Mr Leigh told GB News: “Our employer National Insurance costs have increased from an average of around seven per cent of gross wages to approximately 11 per cent.
“This equates to roughly a £500,000 annual increase.”
He added that the latest National Minimum Wage rise had added a further £350,000, taking total labour cost increases to around £850,000 year-on-year.
He said these increases were a major factor in the decision to close the Cambridge site, adding: “It created a situation where certain sites became financially unviable.”
“Cambridge was one of those locations, and while it was a very difficult decision, it was necessary to ensure the long-term health of the wider business.”
Restaurant boss blames Labour as Cambridge venue closes
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GETTY/Ian Leigh
Mr Leigh said the group had also scaled back hiring as a result of the pressures. “Our total employee numbers have reduced by 12 per cent since last year,” Mr Leigh added.
“Unfortunately, that can mean fewer entry-level and part-time opportunities, which are often the roles that younger people rely on to enter the workforce.”
He described the wider trading environment as extremely difficult, with operators facing sustained increases in labour, food and energy costs at the same time as consumer confidence softens.
“Support has reduced, business rates have increased, and the latest rateable value calculations feel out of step with current trading conditions,” he said.
He said that restaurants were being used as an “easy target” for tax raids
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Ian Leigh
Mr Leigh also said restaurants were being overlooked in recent support packages. While the Government has announced targeted business rates relief for pubs and live music venues, restaurants were excluded.
“There is a sense that restaurants are not always fully included in the conversation,” he said. “A more consistent approach to support across the sector would be welcomed.”
His comments come amid wider frustration in the industry after remarks from Ms Reeves’s entrepreneurship adviser, Alex Depledge, who said Britain “does not need any more restaurants”.
The comments prompted criticism from senior hospitality figures, who said they reinforced concerns that the sector is being sidelined in policy discussions and ignored in tax decisions.
Minimum wage increases compounded the pressure
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Thai Leisure Group
Mr Leigh urged the Government to cut VAT for hospitality, arguing that the UK’s 20 per cent rate leaves operators at a disadvantage compared with European competitors.
“A VAT reduction would make a meaningful difference,” he said. “It would allow us to reinvest back into our businesses, support employment, and help us keep pricing as accessible as possible for customers.”
He added that it would strengthen cash flow and give operators more confidence to invest in new sites rather than scaling back.
Thai Leisure Group operates between 16 and 21 restaurants across the UK, employing more than 600 people and generating an annual turnover of around £32.5million.
Its brands include Chaophraya and the street food-focused Thaikhun chain.
He said: “We’re on our knees here, I’m on my knees. Please listen.”