UK chefs opening Dubai restaurants as Fallow co-owner blames 'tax tsunami'
Top London chefs are opening Dubai restaurants, and James Robson, co-owner of Fallow, says a UK 'tax tsunami' and a stronger work ethic abroad are driving the move. Fallow has signed a deal to open in the Gulf.
UK chefs opening Dubai restaurants as Fallow co-owner blames 'tax tsunami'
Fallow signs Gulf deal
James Robson, co-owner of Fallow in St James's Market, has just signed a deal to open an outpost in the Gulf. The restaurant is regarded as the capital's hottest, serving 1,000 people a day, and has 650,000 Instagram followers, known for dishes such as a whole cod's head drenched in a spicy butter sauce.
- Fallow is based in St James's Market and is considered London's hottest restaurant
- It serves 1,000 diners a day and has 650,000 followers on Instagram
- The Gulf outpost follows a newly signed deal
Why the Gulf: the tax case
Robson says UK chefs opening Dubai restaurants are responding to a "tax tsunami" at home and a better work ethic abroad. He argues that the Gulf actively encourages and assists business, while east Asia has a work ethic and taxation system that puts the UK to shame. He wants UK VAT brought more into line with Europe, pointing to 25% corporation tax and 40%-plus dividend tax.
"We have had a tsunami of taxes that have got to the point where taking business risk simply does not make sense in the UK"
The UK hospitality VAT rate is 20%, among the highest in Europe; the European restaurant average is about 12%, and Italy charges 10% for food sold in restaurants. He says the country has sleepwalked into multiple anti-growth taxations over the last two budgets.
London names heading east
Fallow is not alone. Scott's in Mayfair, the two-Michelin-starred Gymkhana and Park Chinois have opened in Dubai, Isabel's has opened in Abu Dhabi, and Bread Ahead has branched out in Dubai. Jason Atherton, the Michelin-starred chef, now spends a third of his time at his Dubai restaurant, where he finds turning a profit easier than at his London sites.
- Scott's, Gymkhana and Park Chinois: open in Dubai
- Isabel's: open in Abu Dhabi
- Bread Ahead: branched out in Dubai
A warning on workers' rights
Human rights experts have warned of exploitation and poor worker protections in the Gulf. Felix Jakens, Amnesty International UK's director of campaigns, said the UAE has a very poor record on workers' rights and protection from labour exploitation.
He said migrant workers, who make up the majority of the UAE's population, are tied to employers by a sponsorship system, exposed to labour abuse and denied the right to form trade unions, leaving them few ways to challenge unfair treatment. Jakens said any UK business expanding into the Gulf has a responsibility to carry out proper human rights due diligence.
Expansion continues despite Middle East conflicts, including a US-Israeli war in Iran that caused bombardment and an exodus of expats in Dubai earlier this year. Robson says he is proud of the taxes he pays and feels privileged to contribute, but that UK growth no longer has a risk-reward balance, so he will focus overseas. Chefs are calling for Andy Burnham to use next week's budget to cut the VAT rate.
