In a passionate appeal to the government, leading UK chefs have called for a reduction in value-added tax (VAT) for pubs and restaurants to 10%. They warn that the hospitality industry is facing unprecedented challenges, with many businesses struggling to stay afloat. This initiative aims to alleviate financial pressures and align the UK’s tax rates more closely with those of European counterparts.
Industry Leaders Speak Out
Prominent figures in the culinary world, including Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan, voiced their concerns during an interview on BBC Newsnight. They described the current climate as the “hardest it has ever been” for those in hospitality. Simon Rogan highlighted the dire situation, stating, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Kerridge echoed this sentiment, asserting that the government’s taxation policies are fundamentally flawed.
Cabinet minister Pat McFadden acknowledged the government’s position, noting that while they have asked businesses to contribute more, they also strive to provide support where possible. “The Chancellor has to make these decisions in the round,” he explained, balancing the demands for tax cuts against increasing government spending.
A Crippling Situation
The chefs’ urgent request comes on the heels of a challenging period for the hospitality sector. Following the disruption caused by the Covid pandemic, energy prices surged due to the ongoing conflict in Ukraine, exacerbating existing financial pressures. The impact on consumer spending has also been significant, with many customers reducing their dining-out habits in response to the cost-of-living crisis.
Despite various government support initiatives, including the Eat Out to Help Out programme during the pandemic, the industry has continued to suffer. According to UK Hospitality, three hospitality businesses are closing their doors every day since the beginning of 2026.
VAT, currently set at 20% in the UK, is one of the highest rates in Europe, second only to Denmark. The hospitality sector has long advocated for a reduction closer to the lower rates seen in Germany (7%), Ireland (9%), France (10%), Italy (10%), and Spain (10%).
Rising Costs and Employment Challenges
Kerridge, who operates a number of restaurants and pubs, pointed to multiple factors driving up costs, including increased National Insurance contributions, business rates, and rising minimum wage levels. He asserted that the industry has reached a tipping point where further price hikes are not feasible, as they would deter customers from dining out.
Ravneet Gill, a pastry chef and first-time restaurant owner, expressed surprise at the harsh realities of running a business, particularly concerning employment costs. Rogan, who holds nine Michelin stars across his establishments, concurred, stating that VAT is a significant burden on restaurant operators.
While the chefs support raising the minimum wage, they argue that cutting VAT from 20% to 10% would enable operators to invest in their businesses and employees, rather than merely surviving. “Don’t look at us as having profit as a dirty thing,” Gill remarked. “We’re doing it so we can regenerate our areas, employ more people.”
Youth Employment at Risk
The hospitality industry plays a crucial role in providing employment opportunities for young people, with 28% of all 18 to 20-year-olds working in this sector, according to the Institute of Fiscal Studies. However, job openings for young individuals are dwindling, raising concerns of a potential “lost generation.” A recent report revealed that over one million young people are currently not in education, employment, or training—the highest figure in more than a decade.
In response, the government has announced plans to create 300,000 work experience and training placements in various sectors, including hospitality. Treasury minister Torsten Bell noted that employment rates for 18 to 25-year-olds remain stable but acknowledged that higher taxes are impacting the hospitality sector.
Allen Simpson, chief executive of UK Hospitality, emphasised the need for the government to make it financially viable for businesses to hire young talent again. Rogan warned that when restaurants face financial strain, investments in youth employment and sustainability are often the first to be cut. Ottolenghi raised the alarm about the broader societal impact of restaurant closures, stating, “We could end up as a society where people just sit at home, look at screens, and never interact.”
Why it Matters
The call to reduce VAT in the hospitality sector reflects a growing recognition of the challenges facing this vital industry. As restaurants and pubs continue to grapple with rising costs and shifting consumer behaviour, a tax cut could provide the necessary relief to help sustain jobs, support local economies, and preserve the rich tapestry of dining culture in the UK. The outcome of this appeal may very well influence not only the future of the hospitality industry but also the livelihoods of countless young people entering the workforce.
