In a passionate appeal to the UK government, renowned chefs and restaurant owners are calling for a reduction in VAT for pubs and restaurants to 10%. They argue that the hospitality industry is facing unprecedented challenges, with many businesses struggling to survive amidst rising costs and shifting consumer behaviour. This urgent request highlights the pressing need for governmental intervention to support an industry vital to the UK economy.
A Call for Action from Industry Leaders
The chefs—Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan—expressed their concerns during an interview with BBC Newsnight. They warned that the current VAT rate of 20% is unsustainable, especially when compared to lower rates in several European countries like Germany, Ireland, France, Italy, and Spain. Rogan, who holds nine Michelin stars, noted, “We’re not making any money whatsoever, and we’re just keeping our heads above water.” Kerridge reinforced this sentiment, stating that the government is mismanaging taxation, making it increasingly difficult for businesses to thrive.
The Hospitality Sector’s Struggles
The hospitality industry has faced numerous hurdles in recent years, with the COVID-19 pandemic severely impacting trade. As businesses began to recover, the war in Ukraine drove energy prices to new heights, further straining operational costs. Consumers, grappling with the cost of living crisis, have also been cutting back on spending, particularly on dining out. According to UK Hospitality, a staggering three hospitality businesses are closing their doors every day since the beginning of 2026.
Rising costs have placed additional pressure on establishments. “Every pound that we take, a substantial amount of it just goes to the government for a different taxation,” Ottolenghi lamented. He described the situation as “crippling” not just for his own operations but for other establishments like bakeries and cafes.
The Economic Landscape
While the government has introduced various support measures, such as the Eat Out to Help Out initiative and temporary VAT relief, these have not been enough to stave off the industry’s decline. The standard VAT rate in the UK is among the highest in Europe, which is a significant burden for hospitality businesses that typically operate on thin margins.
Kerridge highlighted that many factors contribute to rising costs, including increased National Insurance rates, business rates, and the minimum wage. He argued that the industry has reached a critical point where further price increases cannot be passed on to consumers without risking a loss of patronage. “It just doesn’t work because it will stop people coming out,” he warned.
The Implications for Young Workers
The hospitality industry plays a crucial role in providing employment opportunities for young people, with 28% of 18 to 20-year-olds working in this sector, according to the Institute of Fiscal Studies. However, job opportunities are dwindling. A recent report revealed that over one million young people are currently not engaged in education, employment, or training—the highest number in more than a decade.
Following a report by former Labour minister Alan Milburn, which highlighted the shrinking job market for youth, the government announced plans to create 300,000 work experience and training placements across various sectors, including hospitality. However, Treasury minister Torsten Bell admitted that higher taxes are hindering the hospitality sector’s ability to employ younger workers.
Rogan stated that when faced with economic pressures, investing in young talent and sustainable practices often becomes the first casualty. He emphasised the need for a public discussion on the impact of closing restaurants, warning that it could lead to a society devoid of communal experiences.
Why it Matters
The call from these leading chefs underscores the urgent need for the UK government to reassess its taxation policies related to the hospitality sector. A VAT reduction could provide much-needed relief, enabling businesses to invest in staff, maintain operations, and contribute to local economies. As the industry grapples with unprecedented challenges, the repercussions of inaction could extend beyond restaurant closures, threatening the livelihoods of countless young people and diminishing the rich tapestry of community life across the UK.
