In a passionate plea for support, prominent chefs and restaurateurs from the UK have called on the government to reduce the value-added tax (VAT) for pubs and restaurants to 10%. The group, which includes notable figures such as Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan, has voiced concerns that the hospitality industry is facing unprecedented challenges, making it harder than ever to sustain their businesses.
A Call for Change
During an appearance on BBC Newsnight, the distinguished chefs highlighted the harsh realities of operating within the current economic climate. Simon Rogan, who oversees a collection of Michelin-starred restaurants, lamented, “We’re not making any money whatsoever; we’re just keeping our heads above water.” His sentiments were echoed by Kerridge, who critiqued the government’s taxation policies, asserting they are fundamentally misaligned with the needs of the industry.
Cabinet minister Pat McFadden acknowledged the pressures on businesses but emphasised the complexities involved in making any tax adjustments, stating, “The Chancellor has to make these decisions in the round, netting off all of these demands against the increasing expenditure demands that government faces.”
The Current State of the Industry
The call for a VAT cut comes on the heels of a series of hardships for the hospitality sector. Following the debilitating impacts of the Covid-19 pandemic, soaring energy prices—exacerbated by geopolitical tensions—have significantly inflated operational costs. Compounding this issue, consumers have been tightening their belts amid a rising cost of living, leading to reduced spending on dining out.
According to UK Hospitality, three hospitality businesses are closing their doors every single day since the beginning of 2026. This alarming statistic underscores the urgent need for intervention. Currently, the standard VAT rate in the UK stands at 20%, which is among the highest in Europe, surpassed only by Denmark. The industry has long advocated for a reduction to levels closer to those in Germany (7%), Ireland (9%), and several other European nations (10%).
The Burden of Rising Costs
Kerridge, who runs five establishments, pointed to a multitude of factors that are driving up costs, including increased National Insurance contributions, business rates, and minimum wage mandates. He noted that the industry has reached a critical juncture where raising prices for consumers is no longer a viable option. “It just doesn’t work because it will stop people coming out,” he explained.
Ravneet Gill, a rising star in the culinary world who opened her first restaurant just a year ago, expressed her disbelief at the current level of difficulty facing new entrants to the industry. She remarked on the substantial challenges associated with hiring and maintaining staff, while Rogan added that the high VAT rate is particularly damaging to their financial sustainability.
The Impact on Employment Opportunities
The hospitality sector plays a vital role in providing job opportunities, especially for young people. It is estimated that 28% of all 18 to 20-year-olds in the UK are employed in this sector. However, recent reports indicate a troubling trend: job opportunities for young people are dwindling, with over a million currently classified as not in education, employment, or training—the highest figure in over a decade.
In response to these alarming statistics, the government has vowed to create 300,000 work experience and training placements in various industries, including hospitality. Yet Allen Simpson, CEO of UK Hospitality, argues that the real solution lies in making it financially viable for businesses to hire young people again. “The government needs to reduce the cost of employment,” he stated.
Why it Matters
The plight of the hospitality industry is not merely about the survival of restaurants and pubs; it reflects broader economic and social implications for the UK. As these establishments struggle, the risk of losing vital community spaces and job opportunities increases. A reduction in VAT could provide the necessary relief for businesses to thrive, ultimately fostering employment and enhancing the dining culture that enriches society. As the chefs have pointed out, the vibrancy of our communities depends on the resilience of the hospitality sector, making this a critical issue for policymakers and citizens alike.
