Michelin-star Yorkshire chef says Budget will lead to 'more closures and job losses'
John Healey announced changes to business rates in his Budget.
Warnings of a crisis in the hospitality sector have “fallen on deaf ears”, one of Yorkshire’s leading chefs has said, with fears that the Budget will lead to “more closures and more jobs lost”.
Tommy Banks runs the Black Swan in Oldstead and Roots in York, both of which have Michelin stars, as well the Abbey Inn in Byland and the General Tarleton pub near Knaresbrough.
Mr Banks said John Healey’s Budget was “incredibly frustrating”, with minimal announcements around help for the hospitality industry.
The Chancellor said he would increase the threshold for 100 per cent small business rates relief for hard-hit retail and hospitality firms from £12,000 to £18,000, with tapered relief from £21,000, up from £15,000.
This will mean an extra 70,000 firms taken out of paying business rates altogether, he added.
A further 3,500 pubs, 3,900 restaurants and 2,200 cafes, according to the Treasury.
However, there was no change to VAT for the hospitality sector to bring it in line with Europe, as Mr Banks and other chefs like Tom Kerridge had campaigned for.
“The Budget is incredibly frustrating. We’ve told the government time and again what hospitality needs and why the industry cannot carry on as it is. It feels like those warnings have fallen on deaf ears,” Mr Banks explained.
“I think the government is completely out of touch with the reality of running a business.
“The Chancellor and the Prime Minister talk about backing businesses and creating opportunities, but they’ve delivered very little that changes what we’re facing.
“I welcome rates relief for the businesses it helps, but it comes nowhere near addressing the scale of the problem.
“You cannot keep increasing the cost of employment and expect businesses to keep creating jobs.
“Most businesses I speak to don’t have a turnover problem. They’re as busy as they’ve ever been.
“But the weight of the tax burden, coupled with rising costs, means even busy, vibrant establishments are struggling to make their business models sustainable.
“When you can fill your restaurant and still struggle to make it pay, surely that tells the government something is seriously wrong.”
Earlier in the month, the British Beer and Pub Association (BBPA) said that a pub had shut its doors every day in 2026, at the expense of around 5,000 job losses.
Yorkshire has been particularly badly affected, according to the figures.
“We should be talking about opening businesses, training people and building careers. Instead, we’re talking about whether businesses can survive and how many hours they can afford to give their teams,” Mr Banks added.
“Many operators were hanging on in the hope of meaningful change. After the Budget, I fear we’ll see more closures and more jobs lost.
“I think the government has absolutely blown it here. The frustration across hospitality is enormous, and the campaigning will go up a level. There is no way this industry will go quietly. Watch this space.”