In a heartfelt plea for support, four prominent UK chefs have called on the government to reduce the value-added tax (VAT) for restaurants and pubs to 10%. They argue that the hospitality sector is facing unprecedented challenges and that such a measure could provide much-needed relief. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan voiced their concerns during a recent interview on BBC Newsnight, highlighting the mounting pressures on businesses in the wake of rising costs and a sluggish recovery following the Covid pandemic.
A Call for Change
The hospitality industry has been battered by a series of challenges, from the devastating impact of the Covid-19 pandemic to soaring energy prices resulting from geopolitical tensions. As a result, many establishments are struggling to maintain profitability. Simon Rogan, a chef with nine Michelin stars, stated, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” He, along with his fellow chefs, expressed that the current taxation framework is detrimental to the survival of their businesses.
Tom Kerridge echoed these sentiments, insisting that the government’s approach to business taxation is fundamentally flawed. He pointed out that the high VAT rate in the UK, currently set at 20%, is one of the highest in Europe, significantly hampering competitiveness. Countries like Germany and Spain benefit from much lower rates, which allows their hospitality sectors to flourish.
The Heavy Toll on Business
The call for a VAT cut comes on the heels of a grim statistic: three hospitality businesses are closing their doors every day since the start of 2026, according to UK Hospitality. The standard VAT rate in the UK is a burden that many restaurateurs believe is unsustainable, especially as customer spending habits shift amid a cost-of-living crisis. Yotam Ottolenghi, who operates a chain of restaurants and cafes, described the current economic climate as “crippling,” not just for his own establishments but for the entire sector.
In addition to VAT, rising costs related to National Insurance, business rates, and minimum wage increases are squeezing margins further. Kerridge noted that these cumulative pressures mean businesses can no longer simply pass on costs to customers without risking a decline in patronage.
Youth Employment at Risk
The hospitality sector is a crucial source of employment for young people, with 28% of 18 to 20-year-olds working in this industry, according to the Institute of Fiscal Studies. However, many young people are struggling to find jobs, as highlighted by a recent report indicating over one million are not in education, employment, or training—the highest figure in over a decade.
Chefs are concerned that without immediate action to support hospitality businesses, job opportunities for young workers may dwindle. Rogan emphasised that when restaurants face financial pressure, investment in young talent and sustainability initiatives often becomes the first casualty.
The government’s recent announcement of creating 300,000 work experience and training placements is a step in the right direction, but many argue that reducing tax burdens is essential for long-term viability. Allen Simpson, chief executive of UK Hospitality, asserted that making it easier for businesses to hire young people is crucial.
A Frustrating Temporary Fix
Despite some recent measures, such as a temporary VAT reduction to 5% for children’s meals at various attractions over the summer, many chefs, including Ravneet Gill, regard these efforts as inadequate. Gill described the policy as a “very poor attempt” that could lead to loopholes and misuse rather than providing genuine support for the hospitality sector.
The chefs’ collective appeal for a VAT reduction reflects a broader frustration within the industry regarding the government’s response to their ongoing struggles.
Why it Matters
The hospitality sector is not just a cornerstone of the UK economy; it is also a vital social hub that fosters community interaction. The call for reduced VAT is more than just a financial plea; it represents a critical moment for the future of dining culture in the UK. If left unaddressed, these challenges risk eroding job opportunities for young people and diminish the vibrancy of local economies. As famed chefs advocate for change, the potential ripple effects on employment, community engagement, and economic resilience loom large, underscoring the urgent need for government action.
