Cake shop owners campaign to the right of the Chancellor on higher taxes and lower wages

The goods on sale may be simple and delicious – but spokeswoman Rachel Reeves faced a backlash from Darlington patisserie owners when she tried to justify Labour’s massive tax hikes .

Jane and Frederic Robineau told Finance Minister James Murray that small business owners are crying from their kitchen tables trying to make ends meet. additional taxes and increases to the minimum wage.

Murray, one of the Chancellor’s leaders, arrived hoping to scrap the Government’s plan to make business rates ‘fairer’.

The tour took place on Thursday at Robineau Cafe and Patisserie in the County Durham town where there is a branch of the Northern Budget. It was the day Keir Starmer unveiled a plan for the Government, the Plan for Change.

But hopes will ease Murray into a PR stunt, with Jane Robineau saying: ‘When Labor came in, our sales went down.

‘In January, small businesses close their doors and people become homeless’.

‘We will pay less tax, we will have less corporation tax, but we will pay more in unemployment benefits to families, mums and dads who are no longer able to work.’

Murray tried to defend the Government, saying: ‘The reason we were able to pass the first Budget was to wipe out what we’ve got.’

Jane Robineau interrupted him and said: ‘Please, stop.’ The pair told him they couldn’t afford ‘good accountants’, and were moving their headquarters to low-tax countries like the Irish Republic to cut bills.

Since April last year, Employer’s National Insurance Contributions it is payable when employees earn more than £5,000 a year, rather than the previous £9,100.

At the same time the minimum wage is rising to 6.7 percent, nearly three times the rate of inflation, and reducing business costs.

The patisserie is currently all paying business rates so it will be more expensive from April.

French-born Frederic Robineau explained how the business, which has fourteen staff including two, is facing a £26,000-a-year bill from rising National Insurance and Low cost of the island only.

‘In return for that, we need to sell 25,000 eclairs’, he said. ‘The obvious thing is to increase prices, but we have already increased prices by 5 per cent at the beginning of the year and 5 per cent in September.

‘Our prices are through the roof. We have more than enough prices ready for our customers.’

He said that the bills of the business were too high, after a 200 percent increase in electricity and a 117 percent increase in the cost of buying chocolate.

‘You say you’ve had to make tough decisions. We think you’ve given us some tough decisions,’ he told Murray. ‘For us, it’s a big deal.’

Frederic Robineau, 49, has had a patisserie business with his wife for 22 years, and a cafe for 12 years.

Speaking after a half-hour chat with the Minister, the Robineaus – who recently launched a delivery service to boost sales – were not sure their message would hit home to Whitehall.

Jane Robineau, 52, said: ‘That’s a politician. They should consider the honesty of their work. We have our feet on the ground but we must listen. They were able to come and sit down and talk to businesses before they made these decisions.’

Her husband thought Murray’s answers were ‘very scripted’, adding: ‘You’d think Labor would do everything to push jobs instead of what they do. It’s confusing. We hope that we have shared our story so that he will remember his visit here.’

Government promises ‘fairer’ system

It is a long term system business rates will see warehouses run by internet giants like Amazon pay more, and cut bills for brick-and-mortar retailers, the Government has promised.

Although traders will be under more pressure in the 12 months from April, when the current business rate will be reduced – included in the pandemic – to 40 per cent from 75 percent or 100 percent, Murray said the plan is to help Main Street. in the coming years.

‘We will offer permanent tax cuts for retailers, hospitality and leisure businesses on the High Street, for properties worth under £500,000. Those businesses are the backbone of our high street,’ he said.

‘Of course, the financial system should show how we can be sustainable; so we are introducing a higher rate for large properties of £500,000 rateable value and above including distribution warehouses run by internet giants.’

• The Government is considering its Business Rates Change information sheet – which outlines the proposed changes – until 25 March. See here for more information.