A government minister has defended national insurance rises after an 89-year-old bakery chain co-owned by comedian Romesh Ranganathan ceased trading.
Coughlans Bakery, which had branches in Kent, Surrey, West Sussex and south London, announced it had closed on Tuesday, blaming the government’s decision to hike business rates and national insurance contributions for employers.
The bakery’s managing director Sean Coughlan said the rates “absolutely smashed local business”.
Commons Leader Sir Alan Campbell defended the change on Thursday, saying it was needed to “spend more and invest in our public services”.
Ranganathan became the bakery’s co-owner in 2024 and following the business’ voluntary liquidation said “gutted isn’t the word”.
The Commons Leader’s defence came in response to Carshalton and Wallington MP Bobby Dean, who said his community had been “rocked” by the closure, blaming government policy for “killing” family-run businesses.
He said Coughlans had reported a “fantastic month” in March and that in the previous year there had been new store openings, before the government’s new rules began in April.
“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,” he said.