Four prominent chefs and restaurant owners in the UK have jointly urged the government to reduce the value-added tax (VAT) for eateries and pubs to 10%, citing unprecedented challenges facing the hospitality industry. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan voiced their concerns during an appearance on BBC Newsnight, highlighting that the strain on businesses has reached a critical point.
A Call for Tax Relief
The chefs have expressed profound frustration with the current economic climate, stating that running a hospitality business has never been more arduous. Simon Rogan, a Michelin-starred chef, lamented, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” His sentiments were echoed by Kerridge, who argued that the government’s taxation approach is fundamentally flawed. The chefs believe that reducing VAT from its current rate of 20%—the second highest in Europe—would significantly relieve financial pressure and bring UK rates closer to those in nations such as Germany (7%), Ireland (9%), and Spain (10%).
Yotam Ottolenghi, who operates a diverse portfolio of 11 establishments, described the current circumstances as “crippling,” not only for his own businesses but for the entire hospitality landscape, including bakeries and cafes. He remarked, “Every pound that we take, a substantial amount of it just goes to the government for a different taxation.”
Industry Struggles and Economic Pressures
The hospitality sector has endured substantial setbacks in recent years, first due to the COVID-19 pandemic, which halted trade, and later exacerbated by soaring energy prices linked to the ongoing war in Ukraine. The compounded effect of rising costs and a tightening cost-of-living squeeze has seen consumers pull back on discretionary spending, particularly on dining out. According to UK Hospitality, three establishments are closing their doors each day since the start of 2026, reflecting a dire trend in an industry that once thrived.
While temporary support measures, such as the Eat Out to Help Out scheme during the pandemic, provided some relief, the challenges remain extensive. The standard VAT rate in the UK stands as a barrier to recovery, with the hospitality sector asserting that lower rates could help safeguard jobs and stimulate reinvestment within local communities.
The Impact on Employment Opportunities
Regarding employment, the hospitality sector plays a crucial role in providing job opportunities for young people, employing 28% of 18 to 20-year-olds in the UK, according to the Institute of Fiscal Studies. Yet, a recent report highlighted a worrying trend: job openings for young people are dwindling, raising fears of a “lost generation.”
The government has pledged to create 300,000 work experience and training placements in various sectors, including hospitality. However, Treasury minister Torsten Bell acknowledged that higher taxes were adversely affecting employment levels within the industry. Allen Simpson, CEO of UK Hospitality, emphasised the need for the government to make it economically viable for businesses to employ young individuals again.
The Need for Sustainable Solutions
Kerridge and his fellow chefs indicated that while they support the rise in the minimum wage, a reduction in VAT is essential for the survival of the industry. The chefs are not seeking short-term profit; rather, they are advocating for a sustainable environment that allows for growth and reinvestment in their communities. “We’re not going on fancy yachts and driving expensive cars,” Gill asserted. “We are doing it so we can regenerate our areas that we’re in, employ more people.”
While Chancellor Rachel Reeves recently announced a temporary VAT reduction on certain attractions and children’s meals, Gill criticized this move as insufficient, suggesting it could lead to complications and fail to deliver meaningful support.
Why it Matters
The call for a VAT reduction by these influential chefs underscores a larger narrative about the future of the UK’s hospitality sector. As businesses face mounting operational costs and declining consumer spending, the need for government intervention becomes increasingly urgent. A decrease in VAT could not only help preserve jobs and foster economic growth but also ensure that communities continue to benefit from vibrant social hubs. If the government fails to address these concerns, the very fabric of social interaction in the UK could be at risk, threatening the livelihoods of countless individuals and the rich tapestry of local culture.
