Rachel Reeves accused of ‘direct attack’ on ‘the lifeblood of our economy’

Fuller’s was part of a roughly 200-strong cohort of pubs, hotels and restaurants who have written to Ms Reeves to express fears that her budget measures will lead to venue closures and major job losses in the hospitality industry.

The group has urged the Chancellor to introduce an exemption or lower band for part-time staff working less than 20 hours a week. There are also calls for the reform of business rates to be brought forward by one year.

‘Too much to bear’

Senior figures in the retail industry have also warned about the budget’s impact. Andrew Higginson, chairman of both JD Sports and the British Retail Consortium, told the BBC’s Today program that the tax rises are “too much to bear”.

Simon Emeny, chief executive of Fuller’s, said the chancellor’s budget measures would deter investment, lead to higher prices and damage job creation.

He told The Telegraph: “We want to ensure the pub remains an affordable treat, but I think the tax changes in the Budget will inevitably result in higher prices in a number of sectors. I think that’s an interesting thing for the government to do at a time when they’re trying to curb inflation.”

Mr Emeny said his company is now “proceeding with caution” and will review its own investment plans for next year, although it will “continue to invest heavily” in his legacy in the short term. Fuller’s plans to invest up to £60 million in growing his business during the current financial year, based on decisions made ahead of the budget.

Mr Emeny said: “When we invest so much money, we create jobs, and that is what growth is about. It is unlikely that we will invest as much money in this budget next year, and therefore we will not create jobs, and that is disappointing.”

The increase in national insurance contributions will increase Fuller’s costs by around £3 million. A further £5 million in costs has been incurred from the increase in the National Living Wage, which will rise from £11.44 to £12.21 per hour.