Top Chefs Demand VAT Cut to Ease Pressure on UK Hospitality Sector

Thomas Wright, Economics Correspondent
5 Min Read
⏱️ 4 min read

In a poignant appeal to the government, four prominent UK chefs have called for a significant reduction in Value Added Tax (VAT) for restaurants and pubs, advocating for a drop from the current rate of 20% to just 10%. This request comes amid increasing challenges faced by the hospitality industry, which they describe as experiencing unprecedented difficulties. The renowned chefs—Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan—expressed their concerns during an interview with BBC Newsnight, highlighting the dire financial strain that many businesses are currently under.

A Cry for Relief

As the hospitality sector grapples with soaring costs and dwindling customer spending, the chefs argue that a reduction in VAT could provide much-needed relief. Rogan, who operates a group of restaurants with nine Michelin stars, stated, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” His fellow chef Kerridge echoed these sentiments, stressing that the government’s current taxation policies are fundamentally flawed and detrimental to the sustainability of the industry.

Despite the government’s acknowledgment of the challenges facing businesses, which Cabinet minister Pat McFadden described as a balancing act between competing demands, the chefs remain firm in their stance. They believe that reducing VAT would not only support current operations but also encourage reinvestment and job creation within the sector.

Industry in Crisis

The hospitality industry has encountered a series of setbacks in recent years. The COVID-19 pandemic brought operations to a standstill, and subsequent spikes in energy costs—exacerbated by geopolitical tensions—have further strained finances. Additionally, rising costs of living have led consumers to cut back on discretionary spending, particularly on dining out. The results have been stark: since the start of 2026, an alarming three hospitality businesses have closed every day, according to UK Hospitality.

Industry in Crisis

VAT, which is levied on goods and services, stands as a significant financial burden. The UK’s standard rate is one of the highest in Europe, surpassed only by Denmark. Industry advocates have long called for a reduction to align more closely with rates in Germany (7%), Ireland (9%), France (10%), Italy (10%), and Spain (10%).

The Impact on Employment

The chefs have also pointed out the broader economic implications of the hospitality industry, particularly its role as a vital employment provider for young people. According to the Institute for Fiscal Studies, 28% of all 18 to 20-year-olds work in the hospitality sector, which has been crucial for many seeking their first job experience. However, as the industry contracts under financial pressure, these opportunities are dwindling. A recent report highlighted that over a million young people in the UK are currently not in education, employment, or training—the highest figure in over a decade.

In response, the government has pledged to create 300,000 work experience and training placements across various sectors, including hospitality. However, the effectiveness of these initiatives remains to be seen, particularly as higher taxation continues to stifle the sector’s ability to hire and train new staff. Allen Simpson, chief executive of UK Hospitality, emphasised the need for economic incentives to encourage businesses to employ young people again.

A Call for Change

The chefs are not just advocating for tax relief; they are calling for a broader public discussion about the future of the hospitality industry and the community connections it fosters. Ottolenghi warned that if restaurants continue to close, society risks becoming more insular, with people retreating into their homes and engaging less with one another.

A Call for Change

The message is clear: the hospitality sector is at a critical juncture. The renowned chefs’ plea for a VAT reduction is not merely about profit margins; it is about survival—ensuring that restaurants, pubs, and cafes can continue to thrive and contribute to the economy and community well-being.

Why it Matters

The call for a VAT reduction from prominent chefs highlights the ongoing struggles of the hospitality industry, which plays a vital role in the UK economy and social fabric. A tax cut could rejuvenate a sector that has faced relentless challenges, fostering job creation and supporting local communities. As the chefs emphasise, it’s not just about their businesses—it’s about preserving an industry that brings people together, creating shared experiences and opportunities for generations to come.

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Thomas Wright is an economics correspondent covering trade policy, industrial strategy, and regional economic development. With eight years of experience and a background reporting for The Economist, he excels at connecting macroeconomic data to real-world impacts on businesses and workers. His coverage of post-Brexit trade deals has been particularly influential.
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