In a compelling appeal to the UK government, renowned chefs Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan have called for a significant reduction in Value Added Tax (VAT) for the hospitality sector, suggesting a decrease to 10%. The chefs argue that the current 20% rate is crippling businesses already reeling from the dual impacts of rising operational costs and a challenging consumer environment. They emphasise that the situation has reached unprecedented levels of difficulty for the industry.
A Call for Tax Relief
During a recent discussion on BBC Newsnight, the chefs highlighted the unsustainable financial pressures faced by restaurants and pubs. Simon Rogan lamented, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Kerridge echoed these sentiments, asserting that the government’s taxation policies were fundamentally flawed, with the current VAT contributing significantly to their financial strain.
Cabinet minister Pat McFadden acknowledged the government’s ongoing dialogue with the hospitality sector regarding tax relief. However, he cautioned that any tax cuts must be balanced against the increasing expenditure demands on the government. “The Chancellor has to make these decisions in the round,” he stated, indicating that the government faces competing pressures from various sectors.
The Burden of Rising Costs
The hospitality industry has endured a tumultuous period, with the COVID-19 pandemic severely disrupting trade and subsequent energy price surges exacerbating financial woes. The war in Ukraine has further strained costs, leading to diminished consumer spending, particularly in dining establishments. The industry’s plight is underscored by UK Hospitality’s alarming statistic that three hospitality businesses have closed their doors every day since the beginning of 2026.
Yotam Ottolenghi, who operates 11 establishments, described the financial landscape as “crippling,” asserting that a substantial portion of their revenue is consumed by various taxes. He remarked, “Every pound that we take, a substantial amount of it just goes to the government for a different taxation.” This sentiment was mirrored by the other chefs, who pointed to rising National Insurance contributions, business rates, and minimum wage increases as additional pressures.
A Sector in Crisis
The chefs’ plea comes at a time when the hospitality industry is facing unprecedented challenges. The pandemic’s aftermath has left lingering effects, with many consumers tightening their belts due to cost-of-living pressures. While initiatives like the Eat Out to Help Out scheme provided temporary relief, the long-term outlook remains bleak for many establishments.
Ravneet Gill, a pastry chef and first-time restaurant owner, expressed her surprise at the hardships faced in the industry, particularly concerning labour costs. Simon Rogan, a distinguished chef with a portfolio of Michelin-starred restaurants, highlighted the detrimental impact of VAT on the sector, calling it “a killer” for business sustainability.
The chefs unanimously agreed that a reduction in VAT from 20% to 10% would not only allow operators to reinvest but also help create a more hospitable environment for consumers. “It’s about survival for the industry,” Kerridge emphasised, rather than merely passing on savings to customers.
Employment Opportunities at Risk
Hospitality businesses are critical in providing employment opportunities, particularly for young people, with a substantial 28% of 18 to 20-year-olds working in the sector, according to the Institute for Fiscal Studies. However, a recent report highlighted a troubling decline in job opportunities for young people, with over a million now classified as not in education, employment, or training—the highest figure in over a decade.
In response to these findings, the government has pledged to create 300,000 work experience and training placements in various sectors, including hospitality. However, Treasury minister Torsten Bell conceded that rising taxes are adversely affecting employment rates within the industry. Allen Simpson, chief executive of UK Hospitality, underscored the need for economic incentives to encourage the hiring of younger workers.
Why it Matters
The call for a VAT reduction reflects a broader concern about the sustainability of the UK’s hospitality sector, which serves as a vital part of the economy and a key provider of employment, particularly for young people. As businesses grapple with mounting costs and declining consumer spending, a tax cut could provide the necessary relief to foster recovery and growth. The outcome of this appeal may well determine the future landscape of the hospitality industry, influencing not only the livelihoods of countless workers but also the vibrancy of local communities across the UK.