Commons Leader Alan Campbell has defended the Government's national insurance increases after an 89-year-old bakery chain co-owned by comedian Romesh Ranganathan ceased trading. Coughlans Bakery announced its closure on Tuesday, directly attributing the decision to the Government's hikes in business rates and employer national insurance contributions.
Minister responds to criticism over bakery closure
Speaking on Thursday, Mr Campbell said the changes were necessary to “spend more and invest in our public services”. His defence came in response to Liberal Democrat frontbencher Bobby Dean, who said his community had been “rocked” by the closure. Dean accused Government policy of “killing” family-run businesses.
The Carshalton and Wallington MP stated: “(Coughlans) say that this is so devastating, as March was a fantastic month, as was last year, with growth and the new store openings, but as soon as April’s new Government rules kicked in on national insurance wages and rates, it instantly hit the high street. This is Government policy directly killing long-term run family businesses, and we warned about this before it happened.”
Comedian's reaction and business impact
Ranganathan, best known for his deadpan stand-up comedy, became a co-owner of the bakery chain in 2024. The chain operates shops across south London, Kent, Surrey and West Sussex. In an Instagram post, the comedian expressed his dismay: “Gutted isn’t the word.”
Dean warned that the revenue loss from such closures would grow: “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.”
Government's support measures
Mr Campbell expressed he was “genuinely sorry” to hear of the closure but reiterated the Government's commitment to small businesses. He highlighted a £4.3 billion business rate package and a small business plan aimed at saving time and money, boosting access to finance, and creating new opportunities. He added: “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. Liberal Democrats constantly talk about the need for more spending on all sorts of things, and yet when it comes to a difficult decision about voting for the money, they vote the wrong way.”
