Merrie England, a cafe chain with six branches across West Yorkshire, has announced its immediate closure after 60 years of operation. The company cited a combination of rising costs, including goods, business rates, and energy, alongside government policy, as the reasons for ceasing operations.
The chain, which had been in the same family for 58 years before being acquired by businessman Gary Conway and a team of investors in 2024, stated that a reduction in footfall and customer spending has also contributed to its difficulties. "Many people understandably unable or unwilling to pay the prices that businesses now need to charge in order to survive," the company said in a statement on its website.
Founded in 1966 by Keith and Anita Hanselman, Merrie England employed 84 people at the time of its sale, all of whom are now believed to have been laid off. The cafe was known for its "olde worlde" charm, hot beef sandwiches, and was an early adopter of the drive-thru option in 1980. Its closure has prompted expressions of disappointment from local residents on social media.
Merrie England's closure is presented as the latest in a series of business shutdowns attributed to policies enacted since July 2024. Specifically, increases in National Insurance rates and minimum wage costs for employers, policies introduced under Sir Keir Starmer and Chancellor Rachel Reeves, have been blamed by parts of the hospitality industry.
Conservative MP Neil O'Brien commented on social media that Labour policies had led to the closure. This follows the recent announcement of the closure of Coughlans bakery, a nearly 100-year-old chain, which also cited tax increases and rising fuel prices. Coughlans reported an additional weekly bill of £20,000 and a doubling of its fuel costs. The company's managing director also mentioned the recent heatwave as a factor that led to a 50 percent drop in business. Conservative MP Claire Coutinho expressed sadness over Coughlans' closure, stating that the government should prevent small businesses from being "choked into extinction."
Larger companies have also pointed to government fiscal policies as contributors to high street closures. Claire's, the jewellery and accessory firm, went into administration in January, with bosses citing "highly adverse government fiscal policies," inflation, and weak consumer confidence, putting approximately 2,500 jobs at risk. William Hill also announced in March the closure of 200 of its high street branches due to what it described as "highly damaging" gambling tax increases, specifically mentioning Chancellor Rachel Reeves' decision to nearly double taxes on online gambling and increase sports betting taxes.
Another establishment, Margot Italian restaurant in Covent Garden, announced it would close on June 28, 2025, citing difficult trading conditions and the impact of "substantial business rate and national insurance cost increases imposed on us in this year's budget."