UK Baker Claims Business Penalties Make Operating Abroad Easier

Matthew Jones, founder of the popular London-based bakery Bread Ahead, has expressed frustration with the business climate in the United Kingdom, suggesting it has become more challenging to operate a business domestically than internationally. Jones claimed that his bakery was initially asked to leave Borough Market, a well-known food market in London, due to its rapid expansion and success.

While Bread Ahead's lease at Borough Market has since been extended until 2028, Jones stated he no longer feels entirely welcome there. He cited the process of renewing his lease as "infuriating" and indicated that the bakery might still depart after the extension period. He has found establishing and running new ventures abroad, including upcoming locations in New York and Malaysia, to be significantly easier, with fewer "blockages" and greater support for business growth.

Jones attributed some of the difficulties faced by businesses in the UK to policies enacted by the Labour government. He specifically referenced tax increases, such as the rise in employer National Insurance contributions from 13.8% to 15% and a reduction in the secondary threshold, which he argued pulled lower-paid and part-time staff into taxation for the first time. These measures, he suggested, have created a "punitive" environment for hospitality firms.

Bread Ahead, founded by Jones in 2013, has gained popularity for its doughnuts, sourdough, and pastries. The bakery has developed a significant following, becoming an online sensation through customer reviews. Despite its success, Jones indicated that relocating the business from Borough Market could cost up to £1 million and potentially put the jobs of its 83 employees at risk.

Representatives for Borough Market clarified that the lease was always set to end in March 2028 and that the extension does not secure a long-term future for Bread Ahead at the market. They stated they are working constructively with the bakery throughout the remainder of its tenancy.

Jones, who started Bread Ahead after leaving school at 15, contrasted the current business environment with that of his earlier career, describing it as more conducive to entrepreneurs. He expressed a desire for a less regulated approach, stating, "Why can't we just have a break and just leave people alone? Just let them run their businesses, employ their staff, pay their taxes, do what they need to do."

The challenges described by Jones echo broader concerns within the UK's hospitality sector. Industry leaders have pointed to rising costs, including utility bills and increased minimum wages, coupled with tax policies, as significant pressures hindering business growth and hiring. Allen Simpson, chief executive of UK Hospitality, has previously stated that changes to National Insurance contributions have been a major factor in job losses within the sector over the past two years.