In a heartfelt plea to the government, several prominent chefs in the UK are advocating for a significant reduction in VAT for restaurants and pubs, urging the rate be lowered to 10%. They argue that the hospitality sector is facing unprecedented challenges, with many businesses struggling to stay afloat amid rising costs and changing consumer behaviour. This call to action highlights the urgent need for supportive measures to revitalise a crucial part of the UK economy.
A Call for Change
The gastronomic heavyweights—Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan—have come together to voice their concerns on BBC Newsnight, emphasising the dire state of the industry. Simon Rogan encapsulated the collective sentiment, stating, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” This stark reality reflects the mounting pressures faced by hospitality businesses since the pandemic, compounded by inflation and rising energy costs.
Kerridge echoed this sentiment, criticising current taxation policies as detrimental to the industry. He remarked that the government’s approach to business taxation is “very, very wrong”, indicating that the existing VAT rate of 20%—one of the highest in Europe—is unsustainable for many operators. This high tax burden, they argue, not only stifles growth but also hampers the ability to reinvest in staff and facilities.
The Impact of Rising Costs
The hospitality sector has endured a tumultuous period, starting with the pandemic which forced many establishments to close their doors. Since then, the situation has only worsened due to escalating energy prices linked to geopolitical tensions, particularly the war in Ukraine. As consumers grapple with the ongoing cost-of-living crisis, discretionary spending on dining out has plummeted, further straining the industry.
According to UK Hospitality, the situation is dire, with three hospitality businesses closing their doors every day since the beginning of 2026. The chefs highlighted that while temporary support measures like the Eat Out to Help Out scheme provided short-term relief, the long-term outlook remains bleak without significant policy changes.
A Call for Inclusivity and Support
The chefs argue that VAT reduction would allow businesses not only to survive but to thrive. Kerridge mentioned multiple factors eroding profit margins, including rising National Insurance contributions, business rates, and the minimum wage. He suggested that a VAT cut would enable operators to reinvest in their businesses and boost employment opportunities.
Ravneet Gill, who opened her first restaurant just a year ago, expressed her disbelief at the current challenges, particularly concerning staff costs. She noted that while she fully supports the increase in minimum wage, the high VAT acts as a “killer” for profitability. The chefs collectively believe that lower taxes would help preserve jobs and stimulate growth within the sector.
A Broader Conversation About Employment
The hospitality industry serves as a vital entry point for many young people seeking their first jobs, employing 28% of all individuals aged 18 to 20, according to the Institute of Fiscal Studies. However, a recent report highlighted a concerning trend: job opportunities for young people are dwindling, raising fears of a “lost generation.” With over a million young people currently not engaged in education, employment, or training, the chefs argue that the government needs to take action to make hiring more economically viable for businesses.
Allen Simpson, chief executive of UK Hospitality, stated that reducing the cost of employment would be crucial in reversing this trend. He noted that when restaurants face financial pressures, investments in youth employment and sustainability are often the first casualties. Yotam Ottolenghi stressed the importance of public discourse on the implications of restaurant closures, warning that a decline in hospitality could lead to a more isolated society.
Why it Matters
The hospitality sector is not just about food and drink; it is a key pillar of the UK economy and a major source of employment, particularly for young people. As leading chefs advocate for a reduction in VAT, their call reflects a broader need for supportive government policies that can help preserve jobs, stimulate economic growth, and maintain the vibrant culture that restaurants and pubs foster. Without intervention, the UK risks losing not only its culinary heritage but also the community spirit that dining out embodies.
