Government tax rises force Gatehouse of Fleet business to shut bistro
It will be transforming into a wedding and events-use venue.
Last updated 8th Jan 2025
The owner of a hospitality business in Dumfries and Galloway says tax rises are forcing him to close his Gather bistro.
Duncan McConchie who owns Laggan near Gatehouse of Fleet says an increase in national insurance contributions and wages will hit his business hard.
He says the Autumn Budget was the final straw.
If he were to remain open, he would have to pay out an extra £10,000 profit per month from April onwards to pay the increasing tax.
It was recently decided that he would close the business as a bistro at the end of January and transition the business into an exclusive wedding and event-use venue.
“I’d love to reverse this decision in the future. However, VAT will need to be reduced from 20% for hospitality businesses, non-domestic rates should non-longer be calculated purely on turnover, they should take into account rurality and seasonality, but they UK Government don’t.”
McConchie adds that his business is one of many affected by these increased taxes and that it doesn’t just impact the owners:
“Hospitality businesses like ours in rural areas, they support local supply chains, they support the local economy, they employ local people and slowly one by one, they’re diminishing, they’re disappearing because the returns are there for these businesses to exist.”
A Government spokesperson said:
“The last few years have been incredibly difficult for business. That's why this pro-business government is determined to improve the total business environment including for small businesses.
"We know the vital importance of small businesses to our economy and have already achieved a great deal in a short period of time, including protecting small businesses from late payments. We are now focused on creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets."