In a heartfelt appeal to the government, four prominent chefs have called for a significant reduction in Value Added Tax (VAT) for pubs and restaurants, urging the rate to be lowered to 10% to alleviate the financial strain on the hospitality industry. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan voiced their concerns on BBC Newsnight, highlighting the unprecedented challenges faced by their sector.
A Crippling Environment for Hospitality
The chefs expressed their frustrations over the current state of the hospitality industry, which they claim is facing its toughest period to date. Tom Kerridge lamented that many businesses are simply treading water, stating, “We’re not making any money whatsoever.” He emphasised that taxation policies are misaligned with the realities of running a hospitality business.
Yotam Ottolenghi described the situation as “crippling,” not only for his own restaurants but for others across the spectrum—from bakeries to pubs. “Every pound we take in, a significant portion goes straight to the government,” he explained, underscoring how tax burdens are squeezing profits.
The Burden of Rising Costs
The call for a VAT cut comes on the heels of a challenging few years for the hospitality sector. The COVID-19 pandemic halted operations, followed by soaring energy prices due to geopolitical tensions, which have further inflated operational costs. Coupled with a cost-of-living crisis that has seen consumers tightening their belts, the outlook for dining out remains bleak.
According to UK Hospitality, three hospitality venues have shut down every day since the start of 2026, as businesses struggle to cope with the dual pressures of high operating costs and reduced consumer spending. The current VAT rate in the UK stands at 20%, one of the highest in Europe, exacerbating the challenges faced by the sector.
Calls for Action Amidst Government Hesitation
Cabinet minister Pat McFadden acknowledged the pressures on businesses, admitting that the government often faces demands for tax reductions, but insists that any cuts must be weighed against increasing public expenditure. Despite the government’s previous support measures, such as the Eat Out to Help Out initiative, the chefs believe that more needs to be done.
Kerridge argued that the industry’s capacity to pass costs onto consumers is maxed out, warning that further price increases could deter customers. “It just doesn’t work because it will stop people coming out,” he asserted. Ravneet Gill, who recently opened her first restaurant, echoed these sentiments, noting that hiring staff has become increasingly unaffordable.
The Ripple Effect on Young Workers
The hospitality industry serves as a crucial entry point for young people seeking employment, employing 28% of 18 to 20-year-olds, as reported by the Institute of Fiscal Studies. However, job openings in this sector are rapidly dwindling. A recent report indicated that over one million young people are currently not in education, employment, or training—the highest figure in over a decade—and former Labour minister Alan Milburn warned that the UK risks losing a generation.
In response to this alarming trend, the government has pledged to create 300,000 work experience and training placements across various sectors, including hospitality. Treasury minister Torsten Bell acknowledged that while employment rates for young people remain stable, rising taxes are disproportionately affecting hospitality businesses.
Why it Matters
The plea from these leading chefs for a VAT reduction is not merely a call for financial relief; it represents a desperate bid to save a vital industry that contributes significantly to the UK economy and provides essential job opportunities for young people. A thriving hospitality sector fosters community engagement and cultural exchange, making it imperative for the government to consider their proposals seriously. Failure to act could deepen the crisis, leading to further closures and a generation of young people left without the skills and experience necessary for future employment.
