Four prominent chefs in the UK have voiced their urgent plea for a substantial reduction in value-added tax (VAT) on food and drink sold in restaurants and pubs. They argue that the current economic climate has made operating within the hospitality industry more challenging than ever. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan have called for the VAT rate to be lowered from 20% to 10%, a move they believe would alleviate financial pressures on businesses and align the UK more closely with VAT rates across Europe.
The Struggles of the Hospitality Industry
The renowned chefs shared their experiences during an appearance on BBC Newsnight, highlighting the precarious state of the hospitality sector. Simon Rogan, who manages a collection of Michelin-starred restaurants, remarked, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Kerridge echoed this sentiment, criticising the government’s tax policies as “very, very wrong” for an industry facing numerous challenges.
Cabinet minister Pat McFadden responded to the chefs’ concerns by acknowledging the government’s demands on businesses. He stated that while there is constant lobbying for tax cuts, these decisions are complicated by the government’s need to balance increasing expenditures with public demand for improved services.
A Call for Economic Relief
Yotam Ottolenghi, who operates multiple restaurants and cafes, described the financial pressure as “crippling,” noting that a significant portion of revenue is directed to various taxes. He emphasised that the hospitality sector is suffering from a combination of increased costs and reduced customer spending, exacerbated by the ongoing impact of the COVID-19 pandemic and the rising energy prices linked to the conflict in Ukraine.
The industry has seen a troubling trend, with three hospitality businesses closing their doors every day since the beginning of 2026, according to UK Hospitality. This decline follows a series of temporary support measures, including the “Eat Out to Help Out” initiative and prior VAT relief, which provided short-term relief but did not address the underlying issues.
VAT Rates and International Comparisons
Currently, the standard VAT rate in the UK stands at 20%, one of the highest in Europe, trailing only Denmark. In contrast, neighbouring countries like Germany (7%), Ireland (9%), France (10%), Italy (10%), and Spain (10%) have significantly lower rates. The chefs argue that a reduction in VAT could help restore profitability to their businesses, allowing for reinvestment and growth.
Kerridge pointed out that various factors, including rising National Insurance contributions, escalating business rates, and increased minimum wage requirements, are eroding profit margins. He stated, “There are so many different factors driving costs up,” and expressed concern that businesses can no longer pass these costs onto customers without risking their patronage.
The Impact on Young Workers
The hospitality sector plays a crucial role in providing employment opportunities for young people, employing 28% of individuals aged 18 to 20, as reported by the Institute for Fiscal Studies. However, recent analyses indicate that job prospects for this demographic are diminishing, with a report suggesting the UK risks cultivating a “lost generation” of young workers. Over one million young people are currently not engaged in education, employment, or training, marking the highest figure in over 12 years.
In response, the government has pledged to create 300,000 work experience and training placements across various sectors, including hospitality. However, industry leaders like Allen Simpson, CEO of UK Hospitality, believe that reducing the cost of hiring young people is essential for revitalising employment opportunities.
Rogan emphasised that when restaurants are financially strained, investments in young talent and sustainable practices often become the first casualties. Ottolenghi added that there needs to be a public conversation regarding the impact of restaurant closures on community interaction and social cohesion.
Why it Matters
The appeal from these accomplished chefs underscores a significant crossroads for the UK hospitality industry, which not only contributes to the economy but also serves as a vital source of employment for young people. A VAT reduction could provide much-needed relief, enabling businesses to survive and thrive while fostering a stronger workforce. As the sector grapples with rising costs and decreasing patronage, the government’s response will be critical in determining the future landscape of hospitality in the UK. The decisions made now will have lasting implications for the economy and the community fabric, shaping how we dine, socialise, and work in the years to come.