Coughlans Bakery, an 89-year-old chain with 31 shops across southeast England, has ceased trading after collapsing into voluntary liquidation, citing increased business rates, employer taxes, and fuel prices as major contributing factors. The company, which became part-owned by comedian Romesh Ranganathan in 2024, had been in operation since 1937.
Managing director Sean Coughlan stated that the cumulative effect of these rising costs impacted the business beyond its capacity to absorb them. Despite opening new shops and reporting strong trading in March, increases to employers' National Insurance contributions and business rates, implemented in April, were reportedly costing the company an additional £20,000 per week. Coughlan noted that these tax increases, coupled with a higher minimum wage, significantly affected high street businesses.
Fuel prices also contributed to the bakery's difficulties, with increases attributed to the conflict in the Middle East, which began in late February. The closure comes after Chancellor Rachel Reeves' government introduced a surprise increase to National Insurance contributions for employers in her first budget of 2024. The rate of employer National Insurance Contributions (NICs) rose from 13.8% to 15% in April 2025, with the earnings threshold for payment reduced from £9,100 to £5,000. This change was particularly challenging for service sectors like retail and hospitality, which often employ individuals on part-time contracts.
Coughlan also highlighted the role of higher business rates in the closure, with cafes, bakeries, and restaurants among the businesses facing increased property taxes. While the government had previously aimed to level the playing field for brick-and-mortar businesses against online retailers, many physical stores experienced substantial increases in their bills. Romesh Ranganathan expressed his disappointment on social media, stating, "Gutted isn't the word."