Minister defends taxes as comedian's bakery closes
Claudia Sermbezis/ BBCA government minister has defended national insurance rises after an 89-year-old bakery chain co-owned by comedian Romesh Ranganathan ceased trading.
Coughlans Bakery, which had branches in Kent, Surrey, West Sussex and south London, announced it had closed on Tuesday, blaming the government's decision to hike business rates and national insurance contributions for employers.
The bakery's managing director Sean Coughlan said the rates "absolutely smashed local business".
Commons Leader Sir Alan Campbell defended the change on Thursday, saying it was needed to "spend more and invest in our public services".
Ranganathan became the bakery's co-owner in 2024 and following the business' voluntary liquidation said "gutted isn't the word".
The Commons Leader's defence came in response to Carshalton and Wallington MP Bobby Dean, who said his community had been "rocked" by the closure, blaming government policy for "killing" family-run businesses.
He said Coughlans had reported a "fantastic month" in March and that in the previous year there had been new store openings, before the government's new rules began in April.
"When we warned about it, we were told from the benches opposite that we couldn't fund public services without these rises in business taxes, but let me make it clear - 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," he said.
No 10 Downing StreetResponding, Campbell said he was "genuinely sorry" to hear about the closure.
"Small businesses are at the heart of our local communities and economies, and we are committed as a government to support them in every way that we can, which is why our small business plan will save businesses time and money, boost access to finance, and create new opportunities," he said.
"We're also supporting businesses through a £4.3bn business rate package, which will help a large number of businesses.
"But I would also gently remind him that I understand the point he's making about national insurance, it was done in order to spend more and invest in our public services, and you can't have it both ways."
