In a passionate appeal to the UK government, four prominent chefs have called for a significant reduction in Value Added Tax (VAT) for the hospitality sector, arguing that current economic conditions have made it increasingly difficult for businesses to survive. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan shared their concerns on BBC Newsnight, emphasising that a VAT cut to 10% is essential to alleviate financial pressures on restaurants and pubs struggling to stay afloat.
Industry Struggles Intensify
The hospitality sector has endured a particularly challenging period in recent years, exacerbated by the fallout from the Covid-19 pandemic and rising operational costs linked to the ongoing conflict in Ukraine. The chefs highlighted that while they strive to maintain their businesses, they are grappling with soaring expenses and diminishing customer spending, particularly as households tighten their belts due to the escalating cost of living.
Simon Rogan, who runs a successful restaurant group, laid bare the harsh realities of the industry, stating, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” His sentiments were echoed by Tom Kerridge, who stressed that the government’s taxation policies are fundamentally flawed. “It’s never been this hard,” he asserted, reflecting a shared sentiment among hospitality professionals.
VAT: A Heavy Burden
Currently, the standard VAT rate in the UK stands at 20%, one of the highest in Europe, surpassed only by Denmark. The chefs argue that this places UK businesses at a disadvantage compared to their European counterparts, where VAT rates are significantly lower—Germany (7%), Ireland (9%), France (10%), Italy (10%), and Spain (10%). They believe that reducing VAT for the hospitality sector would not only ease financial strain but also enable businesses to reinvest in their operations and workforce.
Yotam Ottolenghi, who oversees a diverse portfolio of restaurants and delis, described the tax burden as “crippling.” He pointed out that a substantial portion of their revenue is consumed by various taxes, leaving little for growth or innovation. “Every pound that we take, a substantial amount of it just goes to the government for different taxation,” he lamented.
A Call for Action
The chefs’ call for tax relief comes at a critical juncture, with the industry facing unprecedented challenges. According to UK Hospitality, three hospitality businesses have closed every day since the beginning of 2026, highlighting the urgent need for governmental intervention. Despite some temporary measures, including the Eat Out to Help Out scheme during the pandemic, the sector remains in peril.
Ravneet Gill, who opened her first restaurant just a year ago, expressed her astonishment at the difficulties encountered, particularly regarding employment costs. “I never imagined it would be this tough,” she said, stressing the importance of addressing VAT as a means to support the industry.
While Chancellor Rachel Reeves recently announced a temporary VAT reduction on certain attractions, Gill dismissed the move as insufficient, labelling it a “very poor attempt” that could lead to loopholes and fraud, rather than meaningful support for the sector.
The Impact on Employment
The hospitality industry plays a pivotal role in offering employment opportunities, particularly for young people, with nearly 28% of all 18 to 20-year-olds working in this sector, according to the Institute of Fiscal Studies. However, a recent report highlights a worrying trend: job opportunities for young people are dwindling, raising fears of a “lost generation.”
Former Labour minister Alan Milburn warned that the UK risks losing vital work experience opportunities, with over one million young individuals currently not in education, employment, or training—the highest figure in more than a decade. The government has pledged to create 300,000 work experience and training placements across various sectors, including hospitality, but industry leaders argue that reducing employment costs is crucial for sustaining jobs.
Rogan articulated that when restaurants face financial pressures, investment in youth and sustainable practices often suffers. “These are the first two things that fall by the wayside,” he stated, underscoring the importance of a healthy hospitality sector for future generations.
Why it Matters
The hospitality industry is not just about dining out; it reflects the vibrancy of local communities and serves as a critical training ground for young talent. As the chefs rally for a VAT cut, they highlight the broader economic implications of supporting this sector. A thriving hospitality industry fosters employment, stimulates local economies, and enhances social interaction in our communities. Without immediate government support, the risk of further closures looms large, threatening not only the livelihoods of those in the sector but the very fabric of the communities they serve.
