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Daniel and Amy Mc Arthur of Ashers Baking speak to the media outside Belfast High Court after losing their appeal against the ruling that they had discriminated against Gareth Lee.

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The bakery appealed the decision of Belfast County Court which found it guilty of discrimination for refusing to bake a cake in 2014 with the message “Support Gay Marriage” and featuring the Sesame Street characters Bert and Ernie. The Mc Arthurs and the British Christian Institute, which supported them, could be liable for costs that to date are estimated to be more than £150,000.

The North’s Equality Commission, which is supporting Mr Lee, has accrued legal costs of £88,000.

“If equality law means people can be punished for politely refusing to support other people’s causes then equality law needs to change.

This ruling undermines democratic freedom, it undermines religious freedom, and it undermines free speech,” he said.

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Speaking after the ruling, Mr Lee said: “The only thing I would like to say is that I am relieved but also very grateful to the Court of Appeal for the judgment, which I welcome obviously.” The three appeal judges – Lord Chief Justice Sir Declan Morgan and Lord Justices Weatherup and Weir – found that a supplier may provide a “particular service to all or to none but not to a selection of customers based on prohibited grounds”.

Ashers managing director Daniel Mc Arthur said he and his family were “extremely disappointed” with the ruling .

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