A hotelier and pub owner has revealed he is yet to turn a profit in five years of business, as he criticises Chancellor Rachel Reeves's Budget for adding to mounting costs.
Nick Evans, who runs three hospitality businesses, told GB News that rising expenses and new tax changes are making it increasingly difficult to operate.
"I started this because I thought it would be quite fun and it would be good to start a family business but I am yet to turn a profit in the five years I've been doing this," Evans said.
He described how Covid-19 had been "a disaster" for his businesses, followed by soaring energy costs due to the Ukraine crisis.
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Evans revealed his hotel alone faces annual energy costs of over £100,000, while his two pubs each require around £50,000 for power.
At one point, he was paying 75p per kilowatt for electricity.
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"It represents nearly 10 to 11 per cent of my turnover," he said.
The businessman expressed frustration at the additional £50,000 in costs across his three businesses under the new Budget measures.
The impact of National Insurance changes is set to hit Evans's businesses particularly hard.
"National Insurance will be about £15,000 across my employees," he explained.
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The most significant change comes from the reduction in allowances from £9,100 to £5,000, meaning each employee will cost an additional £615.
With 33 staff members across full-time and part-time positions, the impact is substantial.
"Some of my part timers might be doing 20-hours a week and they would be earning £12,000-£14,000 a year. They suddenly cost me another £615, excluding the 1.2 per cent extra to go from 13.8 to 15 per cent, it's somewhat unreasonable," he said.
The mounting costs have already forced Mr Evans to reduce his workforce.
"We're bracing ourselves. We've already made adjustments," he told GB News.
One significant loss was his head of HR, whose responsibilities he has had to take on himself.
"I had to let my head of HR go and do that all myself. I was quite experienced anyway from my previous role but that was quite frustrating," he said.
The changes have left him concerned about future hiring decisions, adding: "It's going to be really hard to employ people without really knowing their backgrounds."
