Independent bakeries popular with younger consumers are warning that rising taxes and operating costs are threatening their viability. Business owners have called on Chancellor John Healey to reduce value-added tax (VAT) and reverse recent increases in employers’ national insurance contributions to help alleviate financial pressures.

Rebecca Rosmini, co-founder of the bakery Signorelli, described the collective impact of higher taxes, employment expenses, energy bills, and business rates as making it "impossible" for small hospitality firms to survive and expand. She stressed that the cumulative burden is placing significant strain on independent businesses across the sector.

Similarly, Lydia Papaphilippopoulos-Snape, who runs Warwick Street Kitchen bakery in Warwick, highlighted that even with strong customer demand, maintaining profitability has become increasingly challenging. “It doesn’t matter how busy you are,” she said, “when the cost of doing business is this high, turning that footfall into a sustainable profit is becoming incredibly difficult.”

These concerns come amid broader inflationary pressures and cost-of-living increases affecting businesses nationwide. Bakery operators argue that targeted tax relief and support measures are necessary to preserve jobs and keep small hospitality ventures afloat in a competitive market.

The calls for government intervention reflect a wider debate on balancing fiscal policy with economic recovery efforts in the wake of recent economic disruptions. As these independent bakeries wrestle with rising expenditures, their appeals underscore the ongoing challenges faced by small businesses in the current economic climate.