James Robson Puts London Dining Expansion On Hold Amid Tax Concerns

James Robson, co-owner of the popular St James's Market eatery Fallow, has finalized a deal to open a new branch in the Gulf region. He attributes the move to a significant increase in domestic tax burdens and a notably stronger work ethic found abroad. This decision reflects a broader trend where high-profile London restaurants are seeking opportunities outside the UK.

Fallow has become a landmark dining destination, serving approximately 1,000 guests daily. Its reputation grew rapidly through social media, where it commands 650,000 followers, and through distinctive dishes like a whole cod's head served in a spicy butter sauce. However, it joins a growing list of established venues making similar international moves.

Several other well-known establishments have already expanded into the region. Scott's of Mayfair, a favorite among celebrities, opened in Dubai. The two Michelin-starred Indian restaurant Gymkhana and the upscale Chinese venue Park Chinois followed suit. Additionally, the Borough Market bakery Bread Ahead and the Mayfair institution Isabel's, a popular spot for politicians, have opened locations in Dubai and Abu Dhabi respectively.

These expansions proceed despite recent regional conflicts. Earlier this year, the US-Israeli war in Iran resulted in bombardment in Dubai and caused many expats to leave. Some dining venues are still recovering, with Dinner by Heston temporarily closed since the conflict began. The Michelin guide also faced criticism for listing 16 restaurants that were no longer open, a result of inspections conducted before the war started.

Robson, currently exploring Asian markets from Hong Kong, identifies East Asia, the United States, and the Gulf as primary targets for growth. He noted that America supports business, the Gulf actively assists new entrants, and East Asia offers a favorable tax and work ethic environment that contrasts sharply with the UK. He specifically criticized the 20% hospitality VAT rate, which is higher than the European average of about 12% and Italy's 10%.

The chef urged Chancellor Andy Burnham to reduce the rate in the upcoming budget. Robson described the recent fiscal policies as a series of anti-growth taxes that have pushed the country into a deficit. He highlighted the 25% corporation tax and dividend tax rates of 40% or more, arguing that the current risk and reward balance no longer supports domestic growth. Michelin-starred chef Jason Atherton echoed these sentiments, spending a third of his time at his Dubai restaurant where profitability is easier.

Human rights advocates have called for caution in these overseas expansions. Felix Jakens, director of campaigns at Amnesty International UK, pointed to the UAE's record on workers' rights. He noted that migrant workers, who form the majority of the population, are tied to employers through a sponsorship system that can lead to exploitation. Jakens emphasized the need for proper due diligence to ensure fair treatment and the right to raise concerns without fear of losing employment or visa status.