Minister defends national insurance rise after Romesh Ranganathan's bakery closure
The bakery ceased trading, citing the recent hikes in business rates as factors.
A government minister has defended the national insurance rate increases following the closure of Coughlans Bakery, an 89-year-old chain co-owned by comedian Romesh Ranganathan.
The bakery ceased trading citing the recent hikes in business rates and employer national insurance contributions as central factors.
On Thursday, Commons Leader Alan Campbell justified the tax changes, highlighting the need for additional spending and investment in public services.
Ranganathan, who's from Crawley, and known for his stand-up comedy, co-acquired the bakery chain which operated across south London, Kent, Surrey, and West Sussex, in 2024.
Expressing his disappointment on Instagram, Ranganathan stated, “Gutted isn’t the word.”
During a Commons session, Liberal Democrat MP Bobby Dean criticised government policy for impacting small businesses in his community and accused the rise of "killing" family-run enterprises.
Dean pointed out that the bakery had experienced growth with recent store openings until the new rules adversely affected operations in April.
He warned, “You will no longer receive any tax income from this local business anymore, and I fear that the revenue loss will continue to grow over the course of this year.”
Campbell expressed his regret over the closure, acknowledging the importance of small businesses.
He outlined the government's commitment through a small business plan aimed at reducing costs, boosting finance access, and creating opportunities.
Despite these efforts, Campbell reiterated the necessity of the tax increases for funding public services and challenged the Liberal Democrats on their stance regarding spending priorities.