Top UK chefs call for 10% VAT cut on hospitality

A group of leading UK chefs and restaurateurs have appealed to the government to reduce the VAT rate on pubs and restaurants to 10%, highlighting the immense difficulties currently facing the hospitality sector. Industry figures including Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan expressed their concerns during a discussion on BBC Newsnight, emphasizing that the current taxation levels make it difficult for businesses to survive in an already challenging environment.

Simon Rogan described the situation grimly, stating, “We’re not making any money whatsoever, and we’re just keeping our heads above water,” while Tom Kerridge criticized the government’s approach to business taxation, suggesting it was “very, very wrong.” Despite these calls, Cabinet minister Pat McFadden responded by recognizing the increased financial contributions required from businesses but noted that government support is provided where possible. McFadden also pointed out the complexity of balancing tax relief demands with the government’s broader financial obligations, explaining that the chancellor must weigh competing pressures on public expenditure.

Yotam Ottolenghi, who oversees 11 establishments including cafes, restaurants, and delis, described the tax burden as “crippling,” not just for his enterprises but for those running bakeries and pubs across the country. He noted that a significant portion of every pound earned goes directly to government taxation. The chefs’ collective plea follows a sustained period of hardship for hospitality businesses, which have been struck severely by the Covid-19 pandemic, followed by sharply rising energy costs attributed to geopolitical conflicts. Although temporary aid—such as the Eat Out to Help Out scheme and VAT relief during the pandemic—provided some respite, industry data reveals that three hospitality businesses have ceased operations daily since early 2026.

VAT, currently set at 20% for UK hospitality, ranks as one of the highest rates in Europe, surpassed only by Denmark. UK Hospitality has consistently lobbied for reductions to levels more in line with countries like Germany (7%), Ireland (9%), and several others at 10%. Kerridge highlighted that rising costs stem from diverse factors beyond VAT, including increased National Insurance contributions, business rates, and minimum wage hikes. He warned that the sector cannot continue to transfer these costs to customers without risking a decline in patronage. Ravneet Gill, who recently opened her first restaurant, lamented the unexpected difficulties, particularly the expense of staffing, while Rogan labeled VAT as a particularly damaging cost factor.

While the chefs support increases in the minimum wage, they argued that lowering VAT to 10% is essential for business survival and reinvestment. Kerridge stressed that the goal is not necessarily to reduce menu prices but to help operators sustain their businesses. Gill added, “We’re not going on fancy yachts and driving expensive cars. We are doing it so we can regenerate our areas that we’re in, employ more people,” but also criticized the government’s proposed policies as ineffective and prone to abuses.

The hospitality sector remains a crucial entry point for many young workers. However, opportunities are contracting, with reports warning of a “lost generation” due to shrinking job prospects. Official statistics indicate that over one million young people in the UK are currently not in education, employment, or training—a 12-year high. The government has pledged to create hundreds of thousands of work experience and training placements across various industries, including hospitality. Treasury minister Torsten Bell acknowledged that employment rates for 18 to 25-year-olds remain unchanged since 2024 but conceded that increased taxation affects hiring decisions.

UK Hospitality’s chief executive, Allen Simpson, urged the government to make youth employment economically attractive again. Simon Rogan pointed out that when businesses face financial pressures, investment in young talent and sustainability are the first casualties. Ottolenghi called for a public conversation about the broader cultural cost of losing these hospitality venues, warning that closures could lead to social isolation and fewer chances for interpersonal interaction. He emphasized that the industry bears a heavy tax burden while playing an essential role in providing skills and opportunities to young people across the nation

Read the full article from The BBC here: Read More