In a fervent appeal to the government, four prominent UK chefs have called for a reduction in Value Added Tax (VAT) for pubs and restaurants to 10%. This urgent request comes amidst a backdrop of escalating operational costs and a challenging economic climate, which the chefs claim is making the hospitality industry more difficult to navigate than ever before. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan spoke out on BBC Newsnight, emphasising the urgent need for fiscal relief to support struggling businesses and enhance competitiveness with their European counterparts.
Industry in Crisis: A Call for Action
The hospitality sector has faced a barrage of challenges in recent years, from the devastating impacts of the COVID-19 pandemic to soaring energy prices triggered by geopolitical tensions, particularly the war in Ukraine. These factors have resulted in ballooning costs for businesses, while consumers, grappling with the cost of living crisis, have scaled back their dining out expenses. According to UK Hospitality, three hospitality establishments have shuttered every day since the onset of 2026, highlighting the dire state of the industry.
Simon Rogan, a celebrated chef with nine Michelin stars, lamented, “We’re not making any money whatsoever; we’re just keeping our heads above water.” He contended that the current taxation framework is unsustainable, stating that the government was “getting taxation on businesses very, very wrong.” Kerridge echoed this sentiment, arguing that the government’s fiscal policies have reached a tipping point where further price increases cannot be passed on to consumers without risking a further decline in patronage.
VAT Rates: A Comparative Perspective
Currently, the standard VAT rate in the UK stands at 20%, one of the highest in Europe, second only to Denmark. Comparatively, countries like Germany (7%), Ireland (9%), France (10%), Italy (10%), and Spain (10%) enjoy significantly lower rates, giving their hospitality sectors a competitive edge. The chefs argue that a VAT reduction would not only ease the financial burden on their establishments but also allow for reinvestment in the local economy and the creation of jobs.
Yotam Ottolenghi, who operates 11 restaurants, cafes, and delis, underscored the crippling nature of the current tax regime, stating, “Every pound that we take, a substantial amount of it just goes to the government for different taxation.” This perspective reflects a broader concern within the industry that excessive taxation is stifling growth and innovation at a time when revitalisation is critical.
The Government’s Response and Broader Implications
In response to the chefs’ advocacy, Cabinet minister Pat McFadden acknowledged that the government has placed significant demands on businesses. He noted that while the government aims to assist where possible, there are limitations due to the associated costs of tax cuts, which must be balanced against increasing public expenditure demands.
Despite the administration’s focus on creating job opportunities, particularly for young people, the hospitality sector is experiencing a worrying decline. A report indicated that over one million young people are currently not engaged in education, employment, or training—the highest figure in over a decade. The Institute of Fiscal Studies highlights that hospitality employs 28% of all individuals aged 18 to 20, making the stability of this sector vital for youth employment prospects.
Ravneet Gill, who recently launched her own restaurant, expressed her disbelief at the current operational challenges, particularly around employment costs, which she described as “extremely taxing.” Both Gill and Kerridge indicated that while they support an increase in minimum wage, a VAT cut would provide essential relief, allowing businesses to invest in staffing and infrastructure rather than merely surviving.
Why it Matters
The call for a VAT reduction is not merely a plea for financial relief; it represents a critical juncture for the UK hospitality sector. As the industry grapples with unprecedented economic pressures, the potential for job creation, local economic revitalisation, and the preservation of community spaces hinges on the government’s willingness to reconsider its taxation policies. Without such adjustments, the sector risks further decline, with far-reaching implications for employment and the vibrancy of local communities. The chefs’ insights reflect a collective urgency—a need to foster a sustainable environment where hospitality can thrive, ensuring that it continues to serve as a cornerstone of British culture and economy.
