Prominent British Chefs Demand VAT Reduction for Hospitality Sector

Leading figures in the UK culinary world are pressing the government to reduce the Value Added Tax (VAT) rate for pubs and restaurants to 10%, warning that the sector is facing unprecedented financial strain. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan have jointly called on officials to slash the current tax burden, arguing that the current rate makes it nearly impossible for businesses to remain viable.

Speaking to BBC Newsnight, the group advocated for the reduction to alleviate pressure on establishments and align UK rates more closely with those found across Europe. "We’re not making any money whatsoever, and we’re just keeping our heads above water," Simon Rogan stated, while Tom Kerridge criticized the government’s approach, asserting that taxation on businesses is being handled "very, very wrong."

The industry leaders’ plea comes after a series of compounding crises. The hospitality sector was initially halted by the pandemic, followed by soaring energy costs driven by the war in Ukraine. These rising expenses have persisted without relief, while customers, squeezed by the cost of living crisis, have significantly reduced their spending on dining out. Although temporary measures like the "Eat Out to Help Out" scheme and previous VAT reliefs offered some support, the damage appears deep. According to the industry body UK Hospitality, three hospitality businesses have closed every day since the beginning of 2026.

Currently, the standard UK VAT rate stands at 20%. UK Hospitality notes that this is the second-highest rate in Europe, surpassed only by Denmark. The lobby group has consistently argued for a reduction to levels comparable to Germany (7%), Ireland (9%), and France, Italy, and Spain (all at 10%).

Yotam Ottolenghi, who operates 11 restaurants, cafes, and delis, described the current tax environment as "crippling," affecting not just his own ventures but the broader landscape of bakeries and pubs. "Every pound that we take, a substantial amount of it just goes to the government for a different taxation," he explained.

Tom Kerridge, who manages five restaurants and pubs, highlighted that multiple government policies are eroding margins, including increased employer National Insurance contributions, business rates, and the minimum wage. The Labour Party supporter noted that the industry has hit a "peak point" where businesses can no longer pass these costs on to consumers without deterring them from visiting. "It just doesn’t work because it will stop people coming out," he said.

Ravneet Gill, a pastry chef and author who opened her first restaurant a year ago, admitted she "never imagined it would be this tough," particularly regarding the high costs associated with employing staff. Simon Rogan, whose restaurant group holds nine Michelin stars across the UK, Malta, and Hong Kong, agreed that hiring staff is expensive but singled out VAT as "a killer."

While Kerridge and his colleagues support the recent increase in the minimum wage, they argue that cutting VAT from 20% to 10% would give operators the breathing room to reinvest in their businesses. Kerridge emphasized that this is a matter of "survival" for the industry, rather than an opportunity to lower prices for customers.

Gill pushed back against stereotypes about restaurant profits, stating, "Don't look at us as having profit is a dirty thing. 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."

The call for structural tax reform follows Chancellor Rachel Reeves’ recent announcement of a temporary VAT reduction from 20% to 5% on various attractions, including children’s meals in restaurants and cafes, over the summer holidays. However, Gill expressed skepticism that such limited measures would be sufficient to address the sector's fundamental challenges.

Source: BBC News Generated at: 2026-05-29 10:55:45 UTC