Historic British Bakery Closes After 109 Years Amid Financial Strain Linked to Rachel Reeves’s Business Tax Raids
April 4, 2026 – Routledges the Bakers, a family-run bakery in Carlisle, has shut all eight of its branches after 109 years of operation, citing rising expenses, declining footfall, and financial pressures exacerbated by recent business tax increases under Rachel Reeves’s policies.
In a statement released Monday, the bakery expressed regret over the closure, which marks the end of an era for the beloved high street business. “This is not something we ever thought we would have to write,” the company said.
The decision to cease trading comes after a sustained period of difficulty, with rising ingredient costs, increased business rates, and higher operational expenses becoming too much to bear. The latest rate hikes, following the removal of a 40% hospitality relief, have compounded the challenges, leaving the bakery unable to cope with rising overheads.
Despite efforts to keep up with escalating costs, including anticipated energy price increases set to rise by £80,000 in 2026, reduced foot traffic and sales have further strained the business. The closure of Routledges the Bakers serves as a stark reminder of the impact of rising taxes and operational costs on small businesses in the UK.
This development has stirred significant concern about the long-term effects of current fiscal policies on local enterprises, with many
