Four prominent chefs in the UK are calling on the government to significantly reduce value-added tax (VAT) for restaurants and pubs to 10%, citing unprecedented challenges faced by the hospitality industry. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan expressed their concerns during an appearance on BBC Newsnight, highlighting that operating in the food and drink sector has become increasingly difficult.
A Call for Action
The chefs, who are well-respected figures in the culinary world, have voiced their frustrations over the financial pressures that have been exacerbated by the pandemic, rising energy costs, and ongoing inflation. “We’re not making any money whatsoever, and we’re just keeping our heads above water,” stated Simon Rogan, a chef renowned for his Michelin-starred establishments. Tom Kerridge added that the government’s taxation approach is fundamentally flawed, putting additional strain on businesses that are struggling to survive.
This plea comes amidst a backdrop of rising operational costs and a declining consumer appetite for dining out, as households tighten their belts in response to the cost of living crisis. The hospitality sector has witnessed three businesses closing every day since the start of 2026, according to UK Hospitality, underscoring the urgent need for governmental intervention.
The Strain on Hospitality
The standard VAT rate in the UK stands at 20%, one of the highest in Europe, behind only Denmark. In comparison, countries like Germany and Italy have rates as low as 7% and 10% respectively. The chefs argue that a reduction in VAT could not only alleviate financial burdens but also encourage reinvestment in their businesses and stimulate job creation. As Ottolenghi put it, “Every pound that we take, a substantial amount of it just goes to the government for a different taxation.”
The hospitality sector has suffered a tumultuous few years, with the Covid-19 pandemic halting trade and energy prices surging due to geopolitical tensions, particularly the conflict in Ukraine. These factors have collectively eroded profit margins, compelling restaurants and pubs to raise prices—a move that has deterred customers from dining out.
Youth Employment at Risk
The chefs’ comments also draw attention to the broader implications of the industry’s struggles, particularly concerning youth employment. The hospitality sector is a significant source of jobs for young people, employing approximately 28% of all 18 to 20-year-olds in the UK. However, recent reports indicate that job opportunities for young people are dwindling, with over a million young individuals currently not in education, employment, or training—the highest rate in over a decade.
Ravneet Gill, who opened her first restaurant just a year ago, expressed disbelief at the challenges faced, particularly in hiring staff. “I never imagined it would be this tough,” she remarked, emphasising the financial strain brought on by higher employment costs. Simon Rogan echoed these sentiments, pointing out that while the minimum wage increase is necessary, the burden of VAT remains a considerable obstacle.
Government Response
In response to the calls for a VAT reduction, Cabinet Minister Pat McFadden acknowledged that the government has required businesses to contribute more but also stressed the complexities involved in fiscal decision-making. He noted that while tax cuts are frequently lobbied for, they come with inherent costs that must be balanced against the government’s increasing expenditure demands.
The government recently introduced a temporary VAT reduction from 20% to 5% for certain attractions during the summer holidays, including children’s meals in restaurants. However, Gill dismissed this measure as a “very poor attempt,” suggesting it could lead to exploitation and ultimately fail to benefit the hospitality sector genuinely.
Why it Matters
The plight of the hospitality industry serves as a reflection of broader economic challenges facing the UK. With rising costs, shrinking profit margins, and a potential crisis in youth employment, the call for a reduction in VAT is about more than just financial relief; it is a plea to preserve a vital part of the British economy and culture. If the government responds positively, it could lead to a revitalisation of an industry that not only supports countless jobs but also enriches the social fabric of communities across the nation.