Four of the UK’s most esteemed chefs have made a passionate plea to the government to reduce value-added tax (VAT) for pubs and restaurants to 10%. This call comes in the wake of unprecedented challenges facing the hospitality industry, which they describe as the most difficult period in recent memory. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan have voiced their concerns on BBC Newsnight, highlighting the urgent need for financial relief to help businesses survive and thrive.
A Cry for Support
The hospitality sector has weathered numerous storms over the past few years. The COVID-19 pandemic brought operations to a standstill, and the subsequent surge in energy prices due to the conflict in Ukraine has only compounded the difficulties. As consumer spending tightens amid rising living costs, many businesses are struggling to stay afloat.
Rogan, renowned for his nine Michelin-starred restaurants, lamented, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Kerridge echoed this sentiment, criticising the government’s taxation policies as “very, very wrong.” The chefs argue that a reduction in VAT would not only alleviate immediate financial pressure but also align UK rates more closely with those in Europe, where VAT rates are significantly lower—Germany at 7%, Ireland at 9%, and France, Italy, and Spain all at 10%.
The Economic Landscape
Despite various government support initiatives, including the pandemic-era Eat Out to Help Out scheme, the sector continues to struggle. According to UK Hospitality, three hospitality businesses have been closing their doors every day since the beginning of 2026. The current standard VAT rate in the UK stands at 20%, making it one of the highest in Europe, a point highlighted by Ottolenghi, who operates 11 restaurants, cafes, and delis.
“Every pound that we take, a substantial amount of it just goes to the government for a different taxation,” he stated, underlining the financial drain on businesses. The chefs collectively argue that the high VAT rates, compounded by rising National Insurance contributions, business rates, and minimum wage increases, are unsustainable for the industry.
The Ripple Effect on Youth Employment
The hospitality sector is a crucial employer for young people, accounting for 28% of all 18 to 20-year-olds, as noted by the Institute of Fiscal Studies. However, a recent report has found that job opportunities for young people are dwindling, with over one million not in education, employment, or training—the highest figure in over a decade.
In response to this crisis, the government has announced plans to create 300,000 work experience and training placements across various sectors, including hospitality. However, critics like Rogan emphasise that as businesses face mounting pressures, investments in young talent and sustainable practices are often the first casualties.
“Investing in youngsters and sustainability are the first two things that fall by the wayside,” he warned. The chefs are advocating for a more conducive environment where businesses can afford to hire and train young staff without being burdened by excessive taxation.
A Call for Dialogue
The chefs’ concerns extend beyond their own businesses; they are worried about the broader societal implications of restaurant closures. Ottolenghi expressed a fear that if vibrant dining establishments continue to vanish, society could devolve into one where people are isolated, glued to screens and disconnected from communal experiences.
He urged for a public conversation about the value of the hospitality industry, stating, “We end up as an industry taking so much of the burden and government lays on more taxes. Those could come down quite easily for us because we employ all these young people and we give them skills.”
Why it Matters
The hospitality industry is not just a cornerstone of the UK economy; it plays a vital role in fostering community interactions and providing opportunities for young people. The chefs’ call for a VAT reduction to 10% could provide much-needed breathing room for struggling businesses, ultimately preserving jobs and nurturing future talent. In these challenging times, a supportive policy change could help revitalize this essential sector and keep the spirit of dining out alive in communities across the nation.
