A senior adviser to Rachel Reeves drew sharp criticism from the hospitality industry after she said Britain “doesn’t need any more restaurants”.
Alex Depledge, who was appointed as the government’s business adviser last year, argued that ministers should prioritize high-growth industries such as technology and advanced manufacturing over hospitality and retail.
Speaking to Insider Media, Depledge said: “We don’t need any more restaurants. I’m not anti-hospitality, but that’s not the goal of my efforts.” She added that the UK should focus on scaling sectors such as clean tech and creative industries to drive long-term economic growth.
Her comments sparked an immediate backlash from innkeepers and restaurateurs who were already struggling with higher social security contributions and corporate tariff reforms.
Sacha Lord, chairman of the Nighttime Industry Association and a former adviser to Manchester mayor Andy Burnham, said the comments added to confusion over Labour’s stance on hospitality. “Small and medium-sized businesses are the largest employers in the private sector,” he said, adding that the sector had been “blindsided” by recent tax changes.
TV chef Michel Roux Jr also criticized the comments on social media, while pub activist Andy Lennox urged Depledge to reconsider what he described as “unwise words”.
According to the Office for National Statistics, around 7 percent of jobs are in the hospitality sector in the UK, which employs around 2.6 million people. The number of restaurants fell 1.3 percent to 89,600 in 2025 as operators faced rising costs and declining consumer spending.
Depledge, which founded property and software companies such as Resi UK and Good Lord, defended its focus on sectors that can generate higher productivity and wages. She noted that while small businesses remain vital, their overall contribution to the economy has remained largely stable over decades.
The Chancellor has introduced targeted relief for pubs, including a temporary 15 per cent discount on business rates, but restaurants and hotels continue to push for wider support.
The episode highlights the growing tension between Labor’s efforts to champion “forward-looking” industries and the concerns of traditional sectors, which remain major employers across the country.
