In a bold call to action, four leading UK chefs have urged the government to significantly reduce Value Added Tax (VAT) for restaurants and pubs to 10%. They argue that the hospitality industry is facing unprecedented challenges, making it increasingly difficult for businesses to survive. This plea comes as the sector grapples with rising costs and a decrease in consumer spending.
Industry Leaders Speak Out
The chefs—Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan—made their case during an appearance on BBC Newsnight, where they expressed their deep concerns about the current state of the hospitality industry. Rogan highlighted the grim reality, stating, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Kerridge echoed these sentiments, asserting that the government’s approach to business taxation is fundamentally flawed.
The chefs believe that a VAT reduction would not only relieve some of the financial pressure on operators but also align the UK’s tax rates more closely with those in other European countries. In their view, the current standard VAT rate of 20% is one of the highest in Europe, trailing only Denmark.
A Sector in Crisis
The hospitality industry has endured a tumultuous few years, marked by the pandemic’s impact and rising energy costs exacerbated by the war in Ukraine. As consumers tighten their belts in response to the cost-of-living crisis, spending on dining out has seen a notable decline. The situation has become dire, with industry statistics revealing that three hospitality businesses are failing every day since the beginning of 2026.
Ottolenghi, who oversees a portfolio of 11 establishments, described the financial strain as “crippling.” He noted that a significant portion of every pound earned is siphoned off by various taxes. “Every pound that we take, a substantial amount of it just goes to the government for a different taxation,” he explained.
The Ripple Effect on Employment
The implications of the current crisis extend beyond just the owners of these establishments. The hospitality sector is a vital source of employment for young people, with 28% of all 18 to 20-year-olds working within it, according to the Institute of Fiscal Studies. However, a recent report highlighted a worrying trend: job opportunities for young people are dwindling, with over a million now classified as not in education, employment, or training—the highest figure in more than a decade.
The chefs argue that reducing VAT would not only help their businesses survive but also create a more conducive environment for hiring young workers. Gill, who opened her first restaurant just a year ago, remarked that she had never anticipated the difficulties faced in attracting and retaining staff due to rising costs.
Policy Changes and Public Debate
Despite recent government initiatives, such as a temporary VAT reduction on children’s meals during the summer holidays, the chefs contend that these efforts fall short of addressing the systemic issues plaguing the industry. Gill referred to the government’s measures as a “very poor attempt” at supporting hospitality, suggesting they could lead to loopholes and fraud rather than providing genuine relief.
As the debate continues, the chefs are calling for a public discussion about the value of restaurants and the social fabric they provide. Ottolenghi warned that the closure of these establishments risks creating a society where people become isolated, spending more time indoors and less time engaging with one another.
Why it Matters
The plight of the hospitality sector is emblematic of broader economic challenges facing the UK. With rising costs and shifting consumer behaviours, a VAT cut could serve as a lifeline for struggling businesses, allowing them to stabilise, reinvest, and contribute to job creation. As the industry stands on the brink, the government’s response could determine not only the future of thousands of restaurants and pubs but also the employment and social dynamics of communities across the country.
