Budget ‘hammer blow’ means high streets risk losing the Great British Curry

The UK high street is facing up to the “inevitable” closure of some of its best-loved curry houses, with hospitality leaders warning measures set out in the Budget forcing many to shut up shop for good.

Oli Khan, president of the Bangladesh Caterers Association, described the double whammy of rising taxes and a cut in business rates relief as a “hammer blow” for a sector that has already been hard hit by soaring energy bills and a hike in the cost of raw ingredients.

He said: “Unfortunately, it is inevitable that this Budget will sound the death knell for hundreds of hospitality businesses. Our sector has been hit time and time again and we simply cannot take any more. 

“We needed help and we needed support, instead we were dealt a hammer blow of higher taxes, higher costs and lower consumer confidence, which means diners across the country will be waving goodbye to the nation’s favourite dish.

“As employers, our members are now facing up to an impossible reality of increased National Insurance contributions and a significantly higher wage bill. It makes it impossible to invest in our businesses. How are we expected to grow with one hand continually tied behind our back?”

The UK curry industry, which contributes £4.5 billion to the UK economy through taxes every year, is a remarkable success story. The sector supports more than 12,000 restaurants across the country, employs over 100,000 people, and serves millions of customers every year. 

The Bangladeshi community, which owns and operates around 80% of these establishments, has played an instrumental role in this success, showcasing the entrepreneurial spirit and resilience of its members.

The BCA had lobbied the Government on the issue of business rate relief. 

The current system provides eligible, occupied, retail, hospitality and leisure properties with a 75 per cent relief, up to a cash cap limit of £110,000 per business. That will now change to a reduced level of 40 per cent in April.

Mr Khan added: “Although this is yet another additional cost we have to face at least we have avoided the disaster scenario of the scrapping of all relief. It’s going to be a painful time for the hospitality sector and it’s going to be a case of survival of the fittest.

“It’s vital that we continue to support our members in any way we can, to ensure their concerns are listened to by those in power and that we stand together to give the Great British Curry the best possible chance of riding out the storm.”

The Bangladesh Caterers Association was set up in 1960 and represents 12,000 restaurateurs across the UK. For more details on the competition and the association visit www.bca1960.com