In a passionate appeal, four prominent British chefs are calling on the government to reduce the Value Added Tax (VAT) for pubs and restaurants to 10%, highlighting the severe financial pressures faced by the hospitality industry. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan, speaking on BBC Newsnight, expressed their concerns about the industry’s current struggles, stating that it has never been more challenging to operate within this sector.
A Crippling Situation for Hospitality
The hospitality industry has endured a tumultuous few years, grappling with the residual effects of the COVID-19 pandemic, soaring energy costs, and a cost-of-living crisis that has led consumers to tighten their spending. The chefs conveyed a sense of urgency, with Rogan stating, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Kerridge echoed these sentiments, criticising the government’s taxation policies as detrimental to business sustainability.
With the standard VAT rate in the UK set at 20%, the second highest in Europe, these chefs argue that a reduction would help bring the UK in line with countries like Germany (7%), Ireland (9%), and Spain (10%). This change, they believe, would alleviate some of the financial strain that has resulted in three hospitality businesses closing their doors every day since the beginning of 2026.
Rising Costs and Shrinking Margins
The chefs highlighted various factors contributing to escalating costs, including increased National Insurance contributions, business rates, and minimum wage requirements. Kerridge pointed out that these rising expenses have reached a point where passing on costs to customers is no longer viable. “It just doesn’t work because it will stop people coming out,” he warned.
Ravneet Gill, who recently opened her first restaurant, lamented the unexpected challenges of running a business in the current climate, especially regarding staffing costs. Simon Rogan, a celebrated chef with nine Michelin stars, also stressed that VAT is a significant burden, further complicating the financial landscape for operators.
The chefs advocate for a VAT reduction as a means not just for survival but for the potential reinvestment in their businesses and communities. Gill emphasised that the aim is not to generate excessive profits, but to create jobs and foster economic growth in their localities.
Addressing Youth Employment Challenges
The hospitality sector plays a crucial role in providing employment opportunities for young people, with 28% of all 18 to 20-year-olds working in this field, according to the Institute of Fiscal Studies. However, a recent report highlighted a concerning decline in job opportunities for this demographic, with over one million young people currently not in education, employment, or training—the highest figure in more than a decade.
As the government pledges to create 300,000 work experience and training placements, industry leaders stress that reducing the cost of employment for businesses is essential. Allen Simpson, chief executive of UK Hospitality, insists that making it economically feasible to hire young people is paramount. Rogan noted that when financial pressures mount, investing in youth and sustainability often becomes an afterthought.
The Government’s Response
In response to the chefs’ plea, Cabinet minister Pat McFadden acknowledged the ongoing discussions about tax cuts but reiterated the complexities involved in government budgeting. He mentioned that the Chancellor must balance the increasing demands for public expenditure against the need to support businesses.
Meanwhile, Chancellor Rachel Reeves recently announced a temporary VAT reduction from 20% to 5% on certain attractions during the summer holidays, including children’s meals at restaurants. However, Gill described this initiative as insufficient, labelling it a “very poor attempt” at genuinely addressing the needs of the hospitality sector.
Why it Matters
The call for a VAT reduction is not merely about financial relief for restaurant owners; it reflects a broader concern for the future of the hospitality industry and the vital role it plays in the economy. As businesses continue to face mounting pressures and job opportunities dwindle, the potential closure of restaurants and pubs could have far-reaching implications for community cohesion and social interaction. The chefs’ appeal underscores the urgent need for a supportive policy environment that fosters economic vitality and nurtures the next generation of workers.
