Hospitality and retail sectors will be forced to make ‘some really tough choices’ – London Business News | Londonlovesbusiness.com

Hospitality veteran has warned that the sector will have to make some “terrible choices” because of the Autumn Budget.

Businesses will make choices over potential cuts to employment and investment in the wake of the Chancellor’s Budget.

On the 30 October Budget Rachel Reeves announced a £25.7 billion change to employers’ national insurance which will take affect from April 2026.

Luke Johnson who is the former chairman of Pizza Express and the investor and director of Gail’s bakery chain said that businesses will have “really tough choices” to make.

Speaking to BBC Radio 4’s Today Programme Johnson said, “I think it’s a mistake because it’s a tax on jobs, a tax on work, it’s a regressive tax because it will hit low earners, and for labour-intensive businesses like hospitality or retail it’s enormously discouraging.

“It’s millions of pounds, and we have some terrible choices to make about whether we cut back on growth or we employ fewer people or we change shifts or other impacts.

“Gail’s is pretty successful, but I’m involved with other businesses that are still recovering from the devastations of lockdowns and energy inflation and they’re going to face some really tough choices.”