In a bold move aimed at alleviating the financial strain on the UK hospitality industry, four leading chefs have called on the government to reduce value-added tax (VAT) for restaurants and pubs to 10%. With the sector grappling with unprecedented challenges, these culinary icons have voiced their concerns on BBC Newsnight, highlighting the critical need for reform to ensure the survival of their businesses.
A Call for Change
The hospitality industry has been facing relentless pressure, exacerbated by the Covid-19 pandemic, soaring energy costs, and shifts in consumer spending due to the cost of living crisis. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan have collectively expressed that the current taxation structure is unsustainable. Rogan, who boasts nine Michelin stars across his restaurant group, lamented, “We’re not making any money whatsoever, and we’re just keeping our heads above water.”
Kerridge emphasised the government’s mismanagement of taxation, asserting that it is crucial to reassess policies that burden businesses further. “The government is getting taxation on businesses very, very wrong,” he said, advocating for a VAT reduction that would align the UK more closely with its European counterparts.
The Current Landscape
The standard VAT rate in the UK stands at 20%, one of the highest in Europe, second only to Denmark. This hefty tax impacts hospitality businesses significantly, cutting into already tight profit margins. The chefs argue that a reduction to 10% would not only relieve financial pressure but also allow these establishments to reinvest in their operations and their communities.
Ottolenghi, who operates 11 venues, described the situation as “crippling,” stating that a large portion of revenue is siphoned off to the government through various taxes. “Every pound that we take, a substantial amount of it just goes to the government for a different taxation,” he explained, underscoring the urgent need for reform.
The hospitality sector has been in turmoil since the pandemic, with three businesses closing their doors every day since the start of 2026, according to UK Hospitality. Despite previous government support measures, the ongoing economic challenges have left many establishments struggling to survive.
The Cost of Employment
The discussion around VAT cuts is further intensified by the rising costs associated with employing staff. Gill, who opened her first restaurant a year ago, admitted she never anticipated the financial challenges of hiring employees. “It’s expensive to take on staff,” she noted, with Rogan adding that VAT is a “killer” for profitability.
While the chefs support the rise in the minimum wage, they argue that a reduction in VAT would provide much-needed breathing room for operators, enabling them to focus on growth rather than mere survival. “Don’t look at us as having profit as a dirty thing,” Gill urged. “We’re doing it so we can regenerate our areas that we’re in, employ more people.”
The Youth Employment Crisis
The hospitality industry plays a pivotal role in providing job opportunities for young people, with 28% of 18 to 20-year-olds employed in this sector. However, recent reports suggest that these opportunities are dwindling. A concerning study revealed that over one million young individuals are currently not in education, employment, or training—the highest figure in more than a decade.
In response to this alarming trend, the government announced plans to create 300,000 work experience and training placements across various sectors, including hospitality. Treasury minister Torsten Bell acknowledged the impact of high taxes on the ability to employ young people, recognising the urgent need to make employment in this sector economically viable again.
Why it Matters
The call for a VAT reduction is not merely about financial relief for restaurants and pubs; it is a crucial step toward safeguarding employment opportunities for young people and maintaining vibrant community hubs. As the hospitality industry continues to face existential challenges, the government must consider the far-reaching implications of its tax policies. By addressing these issues, there is a chance to not only support struggling businesses but also to foster a robust workforce that can thrive in the future. The collective voice of these chefs highlights the urgency of the situation, urging us to reconsider the value of our hospitality sector and the critical role it plays in our society.
