A senior adviser to Rachel Reeves has drawn sharp criticism from the hospitality sector after saying Britain does not “need any more restaurants”.
Alex Depledge, appointed last year as the Government’s entrepreneurship adviser, argued that ministers should prioritise high-growth industries such as technology and advanced manufacturing rather than 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 where my efforts are.” She added that the UK should focus on scaling sectors such as clean tech and creative industries to drive long-term economic growth.
Her remarks prompted an immediate backlash from publicans and restaurateurs already grappling with higher national insurance contributions and business rate reforms.
Sacha Lord, chairman of the Nighttime Industry Association and a former adviser to Manchester mayor Andy Burnham, said the comments deepened confusion about Labour’s stance towards 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 criticised the remarks on social media, while pub campaigner Andy Lennox urged Depledge to reconsider what he described as “unwise words”.
Hospitality accounts for around 7 per cent of UK employment, with roughly 2.6 million people working in the sector, according to the Office for National Statistics. The number of restaurants fell 1.3 per cent in 2025 to 89,600, as operators faced rising costs and squeezed consumer spending.
Depledge, who founded property and software businesses including Resi UK and Good Lord, defended her focus on sectors capable of generating higher productivity and wages. She suggested that while small businesses remain vital, their overall contribution to the economy has remained broadly stable over decades.
The Chancellor has introduced targeted relief for pubs, including a temporary 15 per cent business rates discount, but restaurants and hotels have continued to press for broader support.
The episode underscores growing tension between Labour’s push to champion “future-facing” industries and the concerns of traditional sectors that remain major employers across the country.
Paul Jones
Harvard alumni and former New York Times journalist. Editor of Business Matters for over 15 years, the UKs largest business magazine. I am also head of Capital Business Media’s automotive division working for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.
