In a passionate appeal to the government, four prominent chefs have called for a significant reduction in VAT for pubs and restaurants, urging a cut from the current 20% to 10%. They assert that the hospitality sector is facing unprecedented challenges, with businesses struggling to stay afloat as costs rise and customer spending declines.
A Cry for Help from the Kitchen
Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan, luminaries in the UK culinary scene, voiced their concerns on BBC Newsnight, highlighting the harsh realities of operating in the hospitality industry today. “It’s never been this hard,” lamented the chefs, who collectively oversee numerous restaurants, cafés, and pubs across the country.
Rogan encapsulated the dire situation by stating, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” His sentiments were echoed by Kerridge, who argued that the government’s tax policies are fundamentally misaligned with the realities faced by restaurant owners.
The Strain of Rising Costs
The hospitality industry has been battered by a series of setbacks, beginning with the COVID-19 pandemic, which brought operations to a standstill. The subsequent surge in energy prices, exacerbated by the ongoing conflict in Ukraine, has only added to the financial strain. With customers now tightening their belts due to the escalating cost of living, dining out has become a luxury many are choosing to forgo.
Despite previous support initiatives, such as the Eat Out to Help Out scheme and temporary VAT relief, the industry’s struggles persist. A sobering statistic from UK Hospitality reveals that three hospitality businesses are closing their doors every day since the beginning of 2026, underscoring the urgent need for reform.
VAT Rates at a Glance
At present, the standard VAT rate in the UK stands at 20%, one of the highest in Europe, second only to Denmark. In contrast, neighbouring countries enjoy significantly lower rates: Germany (7%), Ireland (9%), France (10%), Italy (10%), and Spain (10%). The chefs argue that lowering the VAT rate would bring the UK in line with these nations and provide much-needed relief to struggling hospitality businesses.
Kerridge noted that various factors, including increased National Insurance contributions, rising business rates, and minimum wage hikes, have compounded the challenges facing the sector. He cautioned that passing on costs to consumers is no longer feasible, stating, “It just doesn’t work because it will stop people coming out.”
The Future of Employment in Hospitality
The chefs’ plea comes at a time when youth employment opportunities in the hospitality sector are dwindling. The Institute of Fiscal Studies reports that 28% of all 18 to 20-year-olds are employed in this industry. However, a recent report by former Labour minister Alan Milburn warns of a “lost generation,” with over one million young people currently out of work, education, or training—the highest figure in over a decade.
In response to this crisis, the government has announced plans to create 300,000 work experience and training placements across various sectors, including hospitality. However, UK Hospitality’s chief executive, Allen Simpson, argues that the solution lies in making it financially viable for businesses to hire young workers once again.
Rogan emphasised that when restaurants face financial pressure, investments in young talent and sustainable practices are often the first casualties. He and his fellow chefs argue that the government’s tax policies disproportionately burden the hospitality sector, stifling its potential to provide skills and employment to the next generation.
Why it Matters
The call for a VAT reduction is not merely a plea from chefs; it represents a critical moment for the future of the UK hospitality industry. The consequences of inaction could be severe, leading to widespread business closures and a significant loss of employment opportunities for young people. By addressing the financial burdens placed on this vital sector, the government has the chance to foster a more resilient economy, support local communities, and ensure that the rich tapestry of the UK’s dining culture continues to thrive.
