In a passionate plea, several leading chefs from the UK have called on the government to significantly reduce value-added tax (VAT) for restaurants and pubs to 10%. This request comes as they highlight the unprecedented challenges facing the hospitality sector, characterised by rising costs and diminished consumer spending. Prominent figures such as Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan voiced their concerns during a recent appearance on BBC Newsnight, emphasising that the industry is currently experiencing its toughest period ever.
Call for VAT Reform
The chefs argue that lowering VAT could provide much-needed relief for businesses struggling to stay afloat. Tom Kerridge, who operates several restaurants, stated that the current taxation system is “very, very wrong” and is exacerbating the financial strain on hospitality operators. Simon Rogan echoed these sentiments, revealing that many establishments are merely surviving without making any profit.
Yotam Ottolenghi, who oversees a portfolio of 11 restaurants, cafés, and delis, described the current circumstances as “crippling.” He noted that a substantial portion of revenue generated by his businesses is redirected to various taxes, leaving little room for reinvestment or growth. The chefs argue that a VAT cut would align the UK more closely with European counterparts, where rates are significantly lower—Germany at 7%, Ireland at 9%, and France, Italy, and Spain all at 10%.
Impact of Economic Pressures
The hospitality industry has faced a barrage of challenges in recent years. The COVID-19 pandemic halted operations, while subsequent spikes in energy prices—partly attributed to the ongoing conflict in Ukraine—have pushed expenses even higher. Additionally, consumers are tightening their belts in light of the rising cost of living, which has led to a noticeable decline in dining out.
Despite various government support initiatives, including the pandemic-era Eat Out to Help Out scheme, the strain on the sector remains palpable. According to UK Hospitality, three hospitality businesses have been closing their doors every day since the beginning of 2026. This alarming statistic underscores the urgency of the chefs’ call for VAT reform.
Support for Young Workers
The hospitality sector is a crucial provider of employment for young people, with approximately 28% of 18 to 20-year-olds finding their first jobs in this industry. However, recent reports indicate that job opportunities for young people are dwindling, raising concerns about a potential “lost generation.” Former Labour minister Alan Milburn’s recent review highlighted that over one million young individuals are currently not engaged 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 across various sectors, including hospitality. However, industry leaders like Allen Simpson, chief executive of UK Hospitality, stress the need for a fundamental change in the cost structure of employment. Reducing the financial burden on businesses could incentivise the hiring of young workers, fostering a more robust workforce.
The Chefs’ Perspective
While the chefs acknowledge the necessity of supporting a higher minimum wage, they emphasise that a VAT reduction would allow hospitality businesses to “breathe” and reinvest in their operations. Ravneet Gill, who recently opened her first restaurant, shared her struggles with the costs associated with hiring staff, describing the current climate as unexpectedly challenging.
The chefs collectively argue that the emphasis should not be on profit as a negative aspect of their work. Instead, they view their businesses as community hubs that create jobs and contribute to local economies. They assert that the current tax burdens prevent them from fulfilling these roles effectively.
Why it Matters
The call for a VAT reduction from 20% to 10% is not merely an appeal for financial relief; it is a crucial step in safeguarding the future of the hospitality industry and, by extension, the livelihoods of countless workers. As the sector continues to navigate economic headwinds, a shift in tax policy could revitalise businesses, create jobs, and foster community engagement. The implications of such a change extend far beyond the restaurant table, influencing the fabric of society as a whole.
