Gail's bakery chairman slams Rachel Reeves for tax raid as Labour 'don't understand business'

Johnson said: "I think most importantly they the need to put the entire net zero 50 on hold. The American administration are showing the way and they previous consensus about stopping the use of petrochemicals is over.

"With our incredibly high electricity costs, trying to become a world leader in net zero is economic suicide. We have to stop this."

He urged the Chancellor to begin cutting regulations on businesses in order to reverse the current trajectory of the economy, which has remained stagnant following her Autumn Budget last year.

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He added: "Follow through in an incredibly vigorous way in terms of stripping back on the regulations surrounding property planning. its almost impossible or takes too long/costs too much to to build thins in this country.

"To build more nuclear, which I want to do, it takes decades. We have to accelerate and make more efficient the building of new property in this country. Otherwise, we can never enjoy a higher standard of living."

During her fiscal statement, Reeves outlined multiple policy changes including raising the rate of employer National Insurance contributions and the amount paid by the National Living Wage.

This has sparked outrage from the business community with major retailers, including Sainsbury's and Tesco, calling on the Chancellor to reverse her decision-making to avoid job cuts.

"Unfortunately, I think this Government do not understand business. They talk a lot a bout gross, but in terms of their actions with both the tax increases on jobs and this blockbuster Employment Rights Bill, they are travelling in the wrong direction if they want to grow the economy," Johnson said.

Businesses have warned consumers that the price of goods and services may be raised in the short term to offset the cost of National Insurance and wage rises, but the Gail's bakery "wouldn't comment on what our plans might be".

He added: "I certainly hope we don't increase prices. We will avoid it if we possible can. Unfortunately, because of inflation in recent years, a lot of people are feeling the pinch of more expensive thing

"A lot of this is is the legacy of lockdowns. Its also to do with Governments here and elsewhere printing money, and it is also an impact of doing business. Rising taxes are one of those factors."

Last year, Gail's unveiled impressive expansion plans for 2025 with 35 new locations earmarked for opening later in the year. As it stands, the bakery chain has more than 150 stores.

Despite the turbulent economic environment, Johnson shared that he is confident the business will make this ambitious goal.

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"We are going to open to open by the financial year's end in February 35 branches, which is the most we've ever done," the Gail's chairman shared.

"I think it shows our confidence in our business. Next year, we might do even more. We have recently opened several in the Midlands so we're going to continue growing there.

"We're opening a new one in Primrose Hill later this week so our ambitions are undimmed, despite the circumstance.

"In any economy, there are always winners and we intend to be one of those. Our confidence remains."