Full Breakdown
Lancashire pie shop closes, owner blames rising costs and higher National Insurance
By Drooid · · How we work
Shop closure highlights high-street cost pressures
Paul Bowen, the founder of Bowen Pies and a 2024 contestant on *The Apprentice*, announced the permanent shutdown of his Market Street outlet in Chorley, Lancashire. Bowen said the shop, which generated roughly £100,000 in annual revenue, could no longer remain viable because statutory employment costs, energy tariffs and business rates had eroded profit margins. He directed his message to Prime Minister Andy Burnham, describing the recent increase in employers’ National Insurance as “the tipping edge” that forced the decision.
Tax and cost environment driving the squeeze
The closure occurs amid a broader debate over the sustainability of small-business operations in the United Kingdom. Under current tax rules, the employer National Insurance rate is 15 percent on earnings above a secondary threshold of £5,000 per year. For labour-intensive retailers such as bakeries, this raises the marginal cost of each new hire or wage increase. Combined with stagnant consumer spending, higher utility bills and commercial business rates, many independent retailers report shrinking margins and increasing shop vacancies across post-industrial towns.
Data & statistics
- Annual revenue of the closed Chorley shop: about £100,000.
- Employer National Insurance rate: 15 percent on earnings above £5,000 annually.
Official statements & responses
Prime Minister Andy Burnham responded directly to Bowen’s appeal, expressing regret that the economic climate had compelled the closure. He acknowledged that the situation in Chorley reflects a wider national trend affecting high-street retailers.
Verbatim quotes
- “We were already trying to cover everything else going up,” — Paul Bowen, the founder — Paul Bowen, founder of Bowen Pies
- “I am listening and I'm sorry it has got to the point that you need to close your doors.” — Andy Burnham, told prime minister — Andy Burnham, Prime Minister of Greater Manchester
These remarks underscore the tension between government fiscal policy and the operational realities faced by small, labour-intensive businesses on Britain’s high streets.
