BrewDog owner James Watt claims the Conservative government’s tax-slashing mini-budget has “massively handicapped businesses” already on the brink.
He said it displayed “nothing short of a startling display of incompetence” at a time when businesses are already fighting for their lives.
The founder and chief executive of the Aberdeenshire-based company said Friday’s budget “dramatically increased” business costs, which are already up 34% on last year.
It is the second time the entrepreneur has criticised the UK government in recent weeks, after branding them “clueless” for their response to the energy crisis.
Biggest tax cuts in 50 years
Chancellor Kwasi Kwarteng stunned the country last week by announcing a massive £45 billion package of tax cuts.
The pound has since plunged to an all-time low against the US dollar amid hammered market confidence in the government’s economic plans.
In a social media post, Mr Watt wrote: “The mini budget was nothing short of a startling display of incompetence which has massively handicapped businesses who are already fighting for their lives.
“The UK does not need recklessly uninformed tax cutting – it needs stable and disciplined fiscal responsibility.
“The mini-budget has made the current financial crisis, far, far worse than it needed.
The mini budget was nothing short of a startling display of incompetence which has massively handicapped businesses who are already fighting for their lives.
The UK does not need recklessly uninformed tax cutting – it needs stable and disciplined fiscal responsibility.
— James Watt (@BrewDogJames) September 26, 2022
“Like many businesses, much of our input costs are in dollars and the result of the budget is our costs have now dramatically increased on top of already being up 34% versus 2021.”
Experts warn the pound’s plunge towards parity with the dollar will send the cost of goods soaring even higher, potentially worsening the cost-of living crisis.
It also means it will be more expensive for the government to borrow money.
Six BrewDog bars closed their doors due to rising costs and the energy crisis, including in Peterhead.
Another of its north-east bars, the Hop and Anchor in Aberdeen, also closed – just three weeks after the Press and Journal revealed it was opening after Covid restrictions.
Mr Kwarteng and Prime Minister Liz Truss have defended their “growth plans” package, which the Chancellor claimed “favour people right across the income scale”.
Next month, Mr Kwarteng will outline regulatory reforms to ensure the UK’s financial services sector remains globally competitive, the UK Treasury said.
He will then set out his medium-term fiscal plan on November 23.
This will set out further details on the government’s fiscal rules, including plans to ensure debt falls as a share of GDP in the medium-term.
