"Unveiling the Real Reason Behind Pep Guardiola's Restaurant Closure: Rachel Reeves' Harsh Budget Takes the Blame"

PEP Guardiola’s restaurant is shutting down — a victim of Labour Chancellor Rachel Reeves’s brutal Budget tax attack.

, set in a swish street, was regularly used by the Spaniard to entertain City signings and the club’s executive board.

Pals Pep Guardiola and top chef Paco Pérez served native dishes at the restaurant Guardiola’s restaurant Tast Catala is shutting down after costs soaredCredit: Eamonn & James Clarke It has become another victim of Chancellor Rachel Reeves’s brutal Budget tax attackCredit: PA

Premier League stars and bosses such as and visited to tuck into dishes including £43 squid ink rice.

and top chef Paco Pérez opened the venue seven years ago to bring a taste of their native Catalonia to the city.

But a statement on its website on Tuesday revealed this Saturday, saying it had faced “exceptionally challenging trading conditions and increased costs”.

Labour Chancellor Ms Reeves has been slammed for letting and foot the bill in a .

UKHospitality says venues will pay 76 per cent extra on average — leading to fears that hundreds more will shutter up.

This is yet another example of how cost pressures are forcing venues to take the hard decision to close for good.

UKHospitality’s Allen Simpson

Soaring labour and operating costs, , supply issues and lower consumer spending are also hammering the sector.

UKHospitality’s Allen Simpson said last night: “This is yet another example of how cost pressures are forcing venues to take the hard decision to close for good.

“Successive Budgets have dramatically increased the cost of and will soon send business rates soaring. Unfortunately, this will only accelerate business closures and job losses.

“The Government needs to take action. It should increase the business rates discount for hospitality to the maximum 20p to avoid significant rates hikes in April.”

Shadow Business Secretary said: “The Chancellor’s latest Budget was another own goal for pubs and restaurants.

“They were already one-nil down on higher wage costs but her hikes in business rates seems to have sealed their fate.”

Tory MP Alan Mak added: “Conservatives cut business rates for restaurants to get them through the and beyond.

“Labour’s removal of our business rates support is disgraceful and damaging our hospitality sector and high streets.”

In Reeves’s it was announced the by 50p an hour to £12.71 from April 2026, equivalent to an extra £900 a year for a full-time worker.

The minimum wage for 18- 20-year-olds will jump by 85p to £10.85 per hour, a higher than expected increase, as the Government looks to phase out the lower pay band into a single adult rate.

Apprentices and those aged 16-17 will see their hourly pay rise by 55p an hour to £8.

Guests included Man City’s star striker Erling Haaland, pictured with the head chef Arsenal boss Mikel Arteta with Guardiola at the posh eaterieCredit: Eamonn & James Clarke Former Man City stars Kevin De Bruyne and Fernandinho were also among the footie aces who visited the restaurantCredit: Eamonn and James Clarke

Ms Reeves said the rise would help address living costs. But UKHospitality warned it would be passed on to customers via price increases.

The trade body said the changes would cost the sector an extra £1.4billion and deter firms from hiring younger workers.

On top of this, all alcohol duty rates will rise in line with Retail Price Index at 3.66 per cent from February.

The Wine and Spirits Trade Association said this would mean duty will go up by 11p on a bottle of Prosecco, 13p on red wine and 38p for gin.

And in a further blow, there was no cut in the 20 per cent hospitality VAT rate or a reduction in employer’s National Insurance ­contributions, which the industry had called for to help reduce the burden on businesses.

A British Beer and Pub Association spokesperson said: “We believe a constructive dialogue between publicans and MPs is key to bringing about change.

‘Urgent pub-specific solution’

We need more MPs visiting their pubs and championing their locals and do not endorse barring Labour MPs.

“We recognise the strength of feeling this Budget has caused, which is why the BBPA is calling for an urgent pub-specific solution.”

The Treasury has pointed to £4.3billion in support that can be accessed to reduce costs.

This week more than 250 pubs signed up to the Taxed Out campaign to ban Labour MPs from premises in protest at the business and VAT rates hike.

Landlords include Sun columnist and pop star .

The new tax system could see bills go up by £6,000.

The British Beer and Pub Association says 2,000 pubs have closed in the past five years and the new business rates will push the industry to the brink.

Tast Catala was set in a swish Manchester streetCredit: Instagram Pep’s restaurant in King Street seated 120 over three floorsCredit: Alamy Reeves has been slammed for letting restaurants and pubs foot the bill in a shake-up of business ratesCredit: Getty

Pep’s restaurant in King Street seated 120 over three floors, with a casual dining and bar area on the ground floor, a first-floor dining room and second floor with private rooms offering a tasting menu.

The ex-Barcelona boss teamed up with fellow Spaniards — Man City CEO Ferran Soriano and former director of football Txiki Begiristain — to invest in 2018.

World-renowned chef Pérez was brought in to oversee the venture, launched by restaurant group Fazenda.

Pérez holds five stars across three of his restaurants.

He was born in Huelva, southern , but brought up in Catalonia surrounded by quality food at his parents’ tapas bar.

The Tast Catala statement posted on Tuesday said: “Like many in the hospitality sector, we have faced exceptionally challenging trading conditions and increased costs.

A sign of the times really, I’m afraid seven years is actually a long time for a restaurant.

Customer

“But the unwavering support of our shareholders and the dedication of our team have seen us through these past seven years.

“Above all, we are proud to have been able to share some of Catalunya, our beloved country, with the people of Manchester.

“Between now and our final service on December 20, we look forward to welcoming you and celebrating what Tast has always been about: great food, great people and memorable moments.”

In an update yesterday the venue said unredeemed vouchers will be refunded automatically.

One customer wrote in response: “It was a lovely restaurant, the staff were always so friendly and attentive, food was always good, but King Street prices, it’s a tough time for hospitality out there at that end of the market.”

Another added: “A sign of the times really, I’m afraid seven years is actually a long time for a restaurant. Only 50 per cent last over five years and 17 per cent only last a year.”