In a collective plea for change, four prominent UK chefs and restaurant owners are calling on the government to reduce VAT for pubs and restaurants to 10%. They argue that the pressures facing the hospitality industry have reached unprecedented levels, making it increasingly difficult for businesses to survive. The chefs—Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan—expressed their concerns during a recent appearance on BBC Newsnight, highlighting the urgent need for fiscal relief to support the sector.
A Cry for Relief
The hospitality industry has faced a series of challenges over the last few years, from the devastating impact of the COVID-19 pandemic to the soaring energy prices linked to the ongoing conflict in Ukraine. As costs rise, consumers are tightening their belts, particularly when it comes to dining out. The chefs emphasised that despite their best efforts, many establishments are merely keeping their heads above water, with little prospect of turning a profit.
Simon Rogan, whose restaurant group boasts nine Michelin stars, lamented, “We’re not making any money whatsoever,” while Tom Kerridge added that the government’s taxation policies are misaligned with the realities of running a business in this climate. The chefs argue that reducing VAT from the current 20% to 10% would help levelling the playing field with European counterparts, like Germany, Ireland, and Spain, where rates are considerably lower.
The State of the Industry
According to industry body UK Hospitality, the UK’s VAT rate for hospitality is the second highest in Europe, which has been a significant burden for businesses. Despite temporary support measures such as the Eat Out to Help Out scheme, the long-term outlook remains bleak. The alarming statistic that three hospitality businesses are closing every day since the beginning of 2026 underscores the urgency of the situation.
Yotam Ottolenghi, who operates 11 restaurants, cafes, and delis, described the current economic climate as “crippling.” He pointed out that the high taxation eats into revenues, leaving little for reinvestment or growth. The chefs argue that while they support increases in the minimum wage, a VAT reduction is essential for the sustainability of their businesses. Kerridge noted that many operators are at a “peak point” where they can no longer pass on rising costs to customers without risking a decline in patronage.
The Impact on Employment
The hospitality sector is a vital source of employment, particularly for young people. The Institute of Fiscal Studies reports that nearly 28% of 18 to 20-year-olds are employed in this industry. However, recent findings indicate that job opportunities for young people are dwindling, raising concerns about a potential lost generation. The former Labour minister Alan Milburn highlighted that over one million young individuals are currently not in education, employment, or training—the highest figure in over a decade.
Rogan emphasized that when restaurants are under financial strain, investments in youth employment and sustainable practices are often the first to be cut. Camaraderie in the hospitality industry is crucial for community cohesion, as Ottolenghi warned that the loss of these establishments could lead to a societal shift towards isolation. The chefs are advocating for a public dialogue on the value of local dining experiences and the impact of closures.
Government Response and Future Prospects
In response to the chefs’ concerns, Cabinet minister Pat McFadden acknowledged the pressures faced by the hospitality sector and noted that the government is continually lobbied for tax reductions. However, he cautioned that any tax cuts would come with financial implications that must be weighed against other government expenditures.
Chancellor Rachel Reeves recently announced a temporary VAT reduction from 20% to 5% for certain attractions, including children’s meals in restaurants. However, Ravneet Gill critiqued this move as inadequate, suggesting it could lead to complications and not provide meaningful relief to the broader hospitality sector.
Why it Matters
The plight of the hospitality industry is not just a business issue; it reflects broader economic challenges that affect communities across the UK. With the potential for a generation of young people to miss out on vital work experiences, the call for a VAT cut is not merely about profit margins. It is about preserving the cultural fabric of society, ensuring that restaurants, cafes, and pubs can continue to thrive as spaces for connection and community. In the face of increasing costs and declining patronage, the collective voice of these esteemed chefs highlights the urgent need for supportive policies that can help the sector regain its footing and foster a vibrant economy for all.