In a passionate appeal, four prominent UK chefs have called on the government to reduce the value-added tax (VAT) for restaurants and pubs to just 10%. They argue that the current climate has made the hospitality industry more challenging than ever, with Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan highlighting the urgent need for financial relief as they struggle to keep their businesses afloat.
Chefs Sound the Alarm on Industry Struggles
During an appearance on BBC Newsnight, the chefs painted a stark picture of the difficulties facing the hospitality sector. Simon Rogan expressed frustration, stating, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Tom Kerridge echoed his sentiments, claiming that the government’s taxation policies are fundamentally flawed.
The call for a VAT reduction comes in the wake of a series of challenges that have beset the industry. From the crippling effects of the Covid-19 pandemic to skyrocketing energy prices exacerbated by geopolitical tensions, restaurants and pubs have faced relentless pressure. In fact, the industry reported that three establishments are closing their doors daily since the start of 2026, according to UK Hospitality, the leading trade body.
The Financial Landscape for Hospitality
Currently, the standard VAT rate in the UK stands at 20%, one of the highest in Europe, trailing only Denmark. This has prompted industry leaders to advocate for a reduction that aligns closer to the rates in countries like Germany (7%), Ireland (9%), and several others at 10%. Yotam Ottolenghi, who operates 11 venues, described the tax burden as “crippling,” pointing out that a significant portion of revenue goes directly to government taxes rather than supporting business growth.
Kerridge highlighted various factors contributing to rising operational costs, including increased National Insurance contributions, business rates, and the minimum wage. He warned that the industry has reached a tipping point, stating, “It just doesn’t work because it will stop people coming out.”
Ravneet Gill, who opened her first restaurant just a year ago, lamented the unexpected difficulties, particularly regarding employee wages. She, along with Rogan, who boasts nine Michelin stars across his establishments, reiterated that VAT is a “killer” for their business models.
Government Response and Challenges Ahead
In response to the chefs’ concerns, Cabinet minister Pat McFadden acknowledged that the government has placed a greater tax burden on businesses. He stated that while they are aware of the pressures, there are costs associated with tax cuts that must be considered. The Chancellor has been tasked with balancing these demands against the rising costs of government expenditure, which has left many in the hospitality sector feeling overlooked.
Recent government initiatives, such as reducing VAT on children’s meals in restaurants during the summer holidays, have been viewed with skepticism by industry experts. Gill described these measures as “a very poor attempt” to address the real issues facing hospitality and warned of potential loopholes and misuse.
The Impact on Young Workers
The hospitality sector plays a vital role in employment, particularly for young people, with 28% of 18 to 20-year-olds working in this field. However, recent statistics indicate that opportunities for young people are dwindling, with over one million currently not engaged in education, employment, or training—the highest figure in over a decade.
In light of this, the government has pledged to create 300,000 work experience and training placements across various sectors, including hospitality. Yet, industry leaders like Allen Simpson, CEO of UK Hospitality, emphasize that the key to reversing the trend lies in making it financially viable for businesses to hire young workers again.
Rogan noted that when restaurants face financial strain, investments in youth and sustainability are often the first to be sacrificed, while Ottolenghi urged for a public dialogue about the potential losses the community may face if more establishments close.
Why it Matters
The hospitality industry is a cornerstone of both the UK economy and social fabric, providing employment and fostering community engagement. The chefs’ appeal for a VAT reduction is not merely about profit margins; it represents a bid to sustain jobs, support local economies, and cultivate a vibrant dining culture. As the industry grapples with unprecedented challenges, the government’s response will be crucial in determining whether it can thrive or risk becoming a shadow of its former self.
