A Government minister has been forced to defend national insurance rises after an 89-year-old bakery chain co-owned by Romesh Ranganathan ceased trading.
Coughlans Bakery announced it had shut on Tuesday, blaming the Government’s decision to hike business rates and national insurance contributions for employers.
Commons Leader Alan Campbell defended the change on Thursday, saying it was needed to “spend more and invest in our public services”.
Ranganathan – who is best known for his deadpan stand-up comedy – became a co-owner of the bakery chain, which operates a chain of shops across south London, Kent, Surrey and West Sussex, in 2024.
In a post on Instagram, the comedian said: “Gutted isn’t the word.”
The Commons Leader’s defence came in response to Liberal Democrat frontbencher Bobby Dean, who said his community had been “rocked” by the closure, blaming Government policy for “killing” family-run businesses.
The Carshalton and Wallington MP said: “(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.
“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.”
Responding, Mr Campbell said he was “genuinely sorry” to hear that the business had shut.
“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 £4.3 billion 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.
“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.”
