Gaucho Restaurants CEO Warns Rachel Reeves: Tax Hikes Threaten Hospitality Growth

Gaucho Restaurants CEO Issues Stark Warning to Chancellor Over Tax Hikes

By Karl Matchett | August 14, 2025

In a bold move that has sent ripples through the hospitality sector, Baton Berisha, CEO of Rare Restaurants—parent company of the renowned Gaucho and M restaurant brands—has issued a stark warning to Chancellor Rachel Reeves ahead of the upcoming autumn Budget. Berisha claims that the recent tax hikes are stifling growth and threatening the very foundation of the UK’s hospitality industry.

“Your taxes are curtailing growth,” Berisha declared, calling for a reversal of the National Insurance Contributions (NICs) increase implemented in April. He emphasized that he is not alone in this sentiment, as many industry leaders share his concerns regarding the adverse effects of rising taxes on their businesses.

According to figures from the Office for National Statistics (ONS), the hospitality sector has suffered a staggering loss of 84,000 jobs since the NICs hike took effect, translating to approximately 13,000 jobs disappearing each month. Berisha’s decision to speak out now is driven by a desire to highlight the critical challenges facing the industry, which he attributes largely to what he describes as “punitive taxes” imposed by the government.

The timing of Berisha’s warning coincides with a broader economic landscape that is showing signs of strain. The UK’s GDP grew by a modest 0.3% in the second quarter of 2025, down from 0.7% in the first quarter, raising concerns about the sustainability of economic recovery. The Chancellor acknowledged the figures as “positive” but stressed that more work is needed to stimulate growth.

The British Chambers of Commerce (BCC) has also weighed in, urging the government to refrain from imposing further tax burdens in the autumn Budget. Stuart Morrison, research manager at the BCC, stated, “Without thriving firms, the economy will continue to struggle.” He emphasized that the impact of the NICs hike is now evident, with investment and recruitment suffering as a result.

As the government grapples with the implications of these economic challenges, Berisha’s warning serves as a clarion call for policymakers to reconsider their approach to taxation. The hospitality sector, a vital component of the UK economy, is at a crossroads, and the decisions made in the coming weeks could determine its future.

With the autumn Budget looming, all eyes will be on Chancellor Reeves as she navigates the delicate balance between fiscal responsibility and the need to support struggling industries. The stakes have never been higher, and the hospitality sector is counting on a favorable outcome to ensure its survival and growth in the months ahead.