Takeaway owner says next month will be 'Armageddon' as NI and rates increase

The owner of a new sandwich shop in Birmingham says next month could be 'Armageddon' for the food and drink sector thanks to the imminent national insurance hike and rising rates. From April 1, national insurance contributions (NIC) will increase from 13.8% to 15%, affecting businesses with employees earning over £5,000.

Additionally, the Retail, Hospitality and Leisure Business Rates Relief scheme is set to reduce business rate discounts from 75 to 40 percent.

In anticipation of these changes, Harrington's Gourmet Sandwiches, has revised their menu prices. Owner David Dindol told Birmingham Live : "I'm very scared, April 1 is going to be Armageddon."

He also mentioned that wage increases at sister venue Missing Bar would necessitate price hikes, a move expected by many businesses in the hospitality sector.

Mr Dindol added: "We're hiring more part-time staff and the rate relief scheme has been a big hit on us as well."

Concerns extend beyond Harrington's, with social media indicating that several pubs may close their kitchens due to the financial strain. Mr Dindol warned against entering the hospitality industry, saying: "Hospitality is a minefield and if someone said to me they wanted to own a pub, I'd say don't."

The Labour decision has also drawn criticism from two Birmingham landlords outside of Harrington's. Gary McDonnell of Hennessey's sharply criticised the policy, claiming it will "kill pubs".

Meanwhile, Nigel Barker of The Wellington confirmed that the pub would be raising its prices, describing the move as "a really poor decision from the Labour government."