In a passionate appeal, four prominent UK chefs have called on the government to reduce Value Added Tax (VAT) for restaurants and pubs to 10%, highlighting the unprecedented challenges faced by the hospitality industry. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan shared their concerns during a discussion on BBC Newsnight, noting that the current economic climate makes it exceedingly difficult for businesses to thrive.
A Cry for Help from the Culinary Elite
The chefs expressed their frustrations over the mounting pressures that have hit the hospitality sector. Rogan, a celebrated restaurateur, lamented, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Kerridge echoed these sentiments, criticising government taxation policies as fundamentally flawed. The chefs argue that a VAT reduction could help alleviate some of the financial burdens currently threatening their establishments.
Cabinet Minister Pat McFadden acknowledged the ongoing discussions surrounding tax cuts but reminded that the government is constrained by its own financial responsibilities. “We help them where we can,” he stated, while also emphasising the complexities involved in balancing tax demands against increasing government expenditures.
The Impact of Rising Costs
The hospitality industry has faced a relentless barrage of challenges in recent years, starting with the crippling effects of the COVID-19 pandemic, followed by soaring energy prices linked to the conflict in Ukraine. Customers, grappling with their own cost-of-living crises, have drastically reduced their dining-out budgets. According to UK Hospitality, the sector has seen three businesses close every day since the beginning of 2026.
VAT, which is currently set at 20%—the second highest in Europe—has been a key point of contention. The chefs argue that this high rate significantly hampers their ability to reinvest in their businesses. Countries like Germany (7%), Ireland (9%), and France (10%) enjoy much lower VAT rates, which they urge should be mirrored in the UK to foster a more competitive environment for hospitality businesses.
A Sector in Decline
Kerridge, who operates five establishments, pointed out that numerous factors are eroding profit margins. He cited increased National Insurance contributions, business rates, and the rising minimum wage as pivotal issues. “We’ve reached a peak point where businesses can no longer pass on costs to customers,” he asserted. Gill, who opened her first restaurant just a year ago, admitted that she never anticipated the difficulties of managing employee costs in such a tough climate.
Despite their support for minimum wage increases, the chefs unanimously agreed that a VAT reduction would provide vital breathing space for hospitality operators, enabling them to reinvest in their businesses and workforce. “It’s about survival for the industry, not just passing on savings to customers,” Kerridge explained.
Addressing Youth Employment Concerns
The hospitality sector is a crucial entry point for many young people, employing 28% of 18 to 20-year-olds in the UK. Yet, recent reports indicate that job opportunities for young people are diminishing, with over one million currently not in education, employment, or training—the highest level in over a decade. The government has announced plans to create 300,000 work experience placements in various sectors, including hospitality, but critics argue these measures may not suffice.
Allen Simpson, CEO of UK Hospitality, has called for a reassessment of employment costs to make it more feasible for businesses to hire young people. “The government needs to make it economically beneficial to employ young people once again,” he stated, as the chefs emphasised that investing in youth and sustainable practices often falls by the wayside when businesses are under financial strain.
Why it Matters
The hospitality industry is not just a pillar of the economy; it is a vital part of our community fabric. As restaurants and pubs face mounting pressures, the potential loss of these establishments would deprive society of not only jobs but also the social interactions that dining out fosters. A VAT cut could serve as a lifeline, enabling businesses to not only survive but thrive, ensuring they can continue to employ young people and contribute to local economies. The chefs’ call for action highlights the urgent need for a government response that supports this essential sector’s recovery and growth.