BBC’s MasterChef star CANCELS plan for 200-seat restaurant over tax hikes and says he’d be better off opening in Dubai
A STAR of BBC's MasterChef has blamed tax rises for cancelling his plans to open a new 200-seat restaurant.
Dean Banks, who was a finalist on MasterChef: The Professionals in 2018, slammed the incoming hike in National Insurance as a "two-pronged attack" on businesses.
Chancellor Rachel Reeves confirmed in last year's Budget that National Insurance Contributions would increase for employers, rising to 15% up from 13.8%.
On top of this, the threshold at which employers have to pay the tax will fall from £9,100 to just £5,000 from 6 April.
In a scathing comment piece in , Dean said: "The rise in National Insurance] will hugely hinder growth at a time when we should be trying to strengthen the economy."
He said he was even considering moving countries due to the dire tax rises.
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Dean added: "You start to wonder why you’re even bothering here when you could be working in somewhere like Dubai where they’re offering tax-free income."
Now, the chef says he has been forced to cancel his plans to open a 200-seat restaurant in Dundee as a result.
Dean has claimed changes to National Insurance will cost his business an extra £100,000, according to calculations done by his team.
He focused on how previously, the restaurant would not be required to pay National Insurance for casual workers, such as students or seasonal workers, who would often earn less than the £9,100 threshold.
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However, with this falling to just £5,000, and rises coming to the National Minimum Wage, Dean feels those in hospitality are "being attacked left right and centre."
In regards to his current restaurants, including Haar in St Andrews and both Dean Banks at the Pompadour and Dulse Seafood and Wine in Edinburgh, the chef says he has been advised not to raise prices.
He said consumers have already been struggling with inflation and "finding things expensive", adding this has put him in a "strange position".
Dean said: "It'd be great if we could have a headline banner at the front of our restaurant reading: ‘We apologise for the price increases, this is due to the government'."
The chef added that he wished diners could see menu breakdowns in his restaurants that shows how much of the listed price is given to the business versus how much goes to taxation.
He said: "The upsetting part of all of this for me are the nights when I’m sitting there thinking ‘why am I doing this? - It’s starting to feel like we’re running a business purely as a tax machine."
The entrepreneur believes many restaurants will be forced to adopt a strategy that just ensures they break-even, rather than to imagine any profit.
He also admitted his group has cut back on 20% of staff over the past three months through not hiring new workers after others leave.
The chef, however, hopes that people in the hospitality industry will be able to "weather the storm" despite saying that many will face unemployment as a result of the tax increases.
Dean is the owner of the Dean Banks Group which operates a range of restaurants across Scotland including Dean Banks at the Pompadour, Dulse, Haar, Dune, and Temple Lane.
In 2019, the chef said he would punish no-show diners by charging them £65 if they failed to showed up for a reservation.
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He said he lost £1,000 in potential takings in just one day after 14 diners failed to make an appearance at Haar.
Dean called the behaviour of his would-be customers, who accounted for 30 per cent of his bookings, "unacceptable".
