In a fervent appeal to the government, four prominent chefs and restaurant owners in the UK have called for a reduction in Value Added Tax (VAT) for pubs and restaurants, proposing a cut from the current 20% to just 10%. This plea comes amid mounting challenges faced by the hospitality industry, which has been grappling with soaring costs and declining patronage.
A Call for Relief in a Tough Climate
The chefs—Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan—shared their concerns during a recent appearance on BBC Newsnight, highlighting the unprecedented difficulties within the sector. “We’re not making any money whatsoever, and we’re just keeping our heads above water,” warned Rogan, stressing that the current tax burdens are unsustainable. Kerridge echoed this sentiment, stating that the government’s approach to taxation is fundamentally flawed.
Cabinet minister Pat McFadden acknowledged the pressures on businesses but noted that tax cuts often come with significant costs that must be weighed against the government’s broader financial obligations. He pointed out that the Chancellor is continually faced with competing demands from various sectors, complicating the decision-making process regarding tax relief.
The Toll of Rising Costs
The hospitality industry has endured a tumultuous few years, first being hit hard by the Covid-19 pandemic, then facing skyrocketing energy prices exacerbated by the conflict in Ukraine. As a result, numerous establishments have struggled to stay afloat, with three hospitality businesses closing their doors every day since the beginning of 2026, according to UK Hospitality.
Ottolenghi, who operates a diverse portfolio of restaurants and cafés, described the current situation as “crippling.” He lamented that a significant portion of revenue is absorbed by various taxes, leaving little room for growth or reinvestment. “Every pound that we take, a substantial amount of it just goes to the government for a different taxation,” he stated.
Young People at Risk
The hospitality sector has traditionally served as a gateway to employment for young people, employing approximately 28% of individuals aged 18 to 20, as reported by the Institute of Fiscal Studies. However, a recent study has raised alarms about diminishing job opportunities for this demographic, with former Labour minister Alan Milburn warning that the UK risks losing an entire generation. Over one million young people are currently not engaged in education, employment, or training—the highest figure seen in over a decade.
In response to these concerns, the government has announced plans to create 300,000 work experience and training placements across various sectors, including hospitality. However, Treasury minister Torsten Bell conceded that higher taxation is impacting businesses’ ability to hire young workers, underscoring the urgent need for reform.
A Path Forward
Kerridge, who manages multiple restaurants and pubs, pointed out that a VAT reduction would not only provide immediate relief but would also allow operators to reinvest in their businesses. He emphasised that the focus should be on survival, rather than simply passing savings on to customers. Gill added that the current climate makes it difficult to offer competitive pay and maintain quality service, jeopardising the future of the industry.
While the recent announcement by Chancellor Rachel Reeves to temporarily reduce VAT on certain attractions was seen as a positive step, Gill dismissed it as an inadequate solution that could lead to misuse and fraud.
Why it Matters
The plea for a VAT cut is not just about profit margins; it’s a clarion call for the survival of an industry that plays a critical role in the UK economy and the social fabric of communities. As restaurants and pubs continue to face mounting pressures, the government’s response could determine whether the hospitality sector can recover and thrive or whether it will be left to grapple with further closures and job losses. The fate of countless establishments and the livelihoods of many depend on the decisions made in the coming weeks.
