In an urgent appeal to the government, four renowned UK chefs have called for a reduction in Value Added Tax (VAT) for restaurants and pubs to 10%. They argue that the hospitality sector is grappling with unprecedented challenges, warning that the current tax landscape is making it increasingly difficult for businesses to survive. This plea comes as the industry continues to recover from the devastating effects of the pandemic and ongoing economic pressures.
The Struggles of the Hospitality Sector
Prominent figures in the culinary world, including Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan, voiced their concerns during a recent segment on BBC Newsnight. They highlighted that the hospitality industry is currently facing its toughest period in memory. “We’re not making any money whatsoever; we’re just keeping our heads above water,” Rogan lamented, while Kerridge emphasised that government taxation policies are “very, very wrong.”
The chefs’ comments are underscored by a stark reality: three hospitality establishments are closing their doors every day since the beginning of 2026, according to industry body UK Hospitality. The standard VAT rate in the UK stands at 20%, one of the highest in Europe, and the chefs advocate for a reduction that would align it more closely with rates seen in countries like Germany (7%) and Ireland (9%).
Economic Pressures and Consumer Spending
The hospitality sector has been hit hard by a combination of crippling factors. From the complete shutdown during the Covid-19 pandemic to soaring energy costs exacerbated by geopolitical tensions, businesses are struggling to cope. The rising cost of living has also led consumers to tighten their wallets, particularly when it comes to dining out.
Ottolenghi, who operates 11 venues, described the financial strain as “crippling.” He pointed out that a significant portion of every pound taken in revenue goes directly to various taxes. This financial burden is not just a concern for high-profile chefs; it resonates throughout the entire industry, impacting bakeries, cafes, and pubs.
The Way Forward for the Hospitality Industry
While various government support initiatives have offered temporary relief, such as the Eat Out to Help Out scheme and previous VAT reductions, they have not provided a long-term solution. The chefs contend that without meaningful tax reform, the industry will continue to struggle. Kerridge highlighted the myriad factors driving up operational costs, including increased National Insurance contributions and rising business rates.
Ravneet Gill, who opened her first restaurant just a year ago, expressed her shock at the challenges of running a hospitality business, particularly the financial strain of hiring staff. She, alongside her peers, argues that a VAT cut would not only enable businesses to breathe but also allow for reinvestment into their operations and local communities.
A Call for Action
Chancellor Rachel Reeves recently announced a temporary VAT reduction to 5% on children’s meals during the summer holidays, but Gill dismissed this as a “very poor attempt” to support the sector. The chefs believe that without a broader reduction in VAT, the hospitality industry risks losing a vital part of the UK’s economy.
In addition to the immediate financial concerns, there is a larger societal implication to consider. The hospitality industry plays a crucial role in providing employment for young people, with 28% of 18 to 20-year-olds working in this sector, according to the Institute of Fiscal Studies. However, a recent report revealed a concerning trend: over one million young people are now out of education, employment, or training, the highest figure in more than a decade.
Why it Matters
The plea from these esteemed chefs serves as a stark reminder of the fragility of the hospitality industry, which is a cornerstone of British culture and employment. A reduction in VAT could provide much-needed relief, fostering a healthier business environment that supports growth, job creation, and community engagement. As the government weighs its options, the future of the hospitality sector—and the many livelihoods it sustains—hangs in the balance. Without swift action, we may face the dire consequences of a diminished dining landscape, impacting not only the economy but the social fabric of our communities.
