A family-run bakery has announced its closure, with its owners blaming both Rachel Reeves and Sir Keir Starmer for blighting Britain’s high streets with “devastating” tax hikes.Coughlans, which has 31 stores across south London and the South East, fell into voluntary liquidation after it was unable to stomach an extra £20,000 in costs each week.The company’s co-owner, Sean Coughlan, blamed a lethal combination of soaring fuel prices from the Iran war as well as the National Insurance hike driven by the Chancellor. Founded in 1937 by grandfather Jack Coughlan, the business has seen through three generations of local bakers.Co-owned by comedian Romesh Ranganathan since 2024, Mr Coughlan was hopeful his business was on an upward trajectory, with plenty of growth across the company as new stores opened across the area.One of their longer-lasting stores became a local landmark along Oxted High Street in Surrey, just a few minutes from where Sir Keir grew up.Mr Coughlan said: “It’s with the heaviest of hearts that I’m bringing you the news that sadly we at Coughlans Bakery are closing our doors today for the last time.”The last two months with the fuel prices from the war, new National Insurance charges and higher rates are costing us an extra £20,000 per week…Coughlans has a much-loved store in the heart of Oxted, a stone’s throw away from where Sir Keir Starmer grew up | GOOGLE”This has affected us more than we could have ever imagined.”But, when April rolled around with Ms Reeves’s new taxes becoming a reality for British businesses, the damage “instantly” hit the high street, Mr Coughlan said.Mr Coughlan also revealed recent heatwaves, which saw the South East swelter in temperatures as high as 35C, had been the “nail in the coffin”.“These two heatwaves where no-one really seems to come out,” he said.“We literally take about 50% of what we would normally take in a normal week, with our outgoing still exactly the same, which is absolutely heartbreaking.”Co-owner Romesh Ranganathan reposted Mr Coughlan’s video on social media with the caption: ‘Gutted isn’t the word’ | GETTYCo-owner Mr Ranganathan reposted Mr Coughlan’s video to his 1.4 million followers on Instagram with the caption: “Gutted isn’t the word.”While distraught locals have voiced their outrage, with Labour being branded “thieves” and chastised for “destroying” British shopping hubs.Sir Keir’s imminent departure from Downing Street, however, could offer the incoming leader a chance to fire the unpopular Chancellor.Labour leadership frontrunner Andy Burnham has openly declared that his party “got it wrong” on small businesses, although he has steered clear of committing himself to concrete policies so far.On Monday, in his first major speech since becoming an MP, he declared: “Rather than being a marker of decline, shouldn’t we make our high streets the new symbol of Britain’s renaissance?”The Downing Street double-act was blamed for the business’s demise | GETTYIn the past, he has declared family businesses made up the “heart and soul” of high streets across the country and must be handed the “chance to thrive”.Along the Makerfield campaign trail, the Prime Minister-in-waiting said that he would review the increase in employers’ National Insurance contributions which Ms Reeves introduced in her first budget.”I have said that I thought the weight of the burden on employers’ national insurance wasn’t the right decision. However, it was the decision,” the Makerfield MP said.He continued: “There is more that needs to be done to listen to the voice of small business, and as I’ve gone around this constituency, I’m hearing it a lot. People just feel they are at the kind of limits of what they can do.”“The (Government) has undervalued the contribution these businesses make to our livelihoods and our communities. Our high streets matter to me because they matter to the people who live here.”