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Top chefs urge government to slash VAT for restaurants and pubs
Four prominent UK chefs and restaurateurs have called on the government to reduce VAT for hospitality businesses to 10%, warning the industry faces unprecedented financial strain. Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan told BBC Newsnight that current tax levels are unsustainable and push businesses to the brink of collapse.
Industry at breaking point
Rogan, whose restaurant group holds nine Michelin stars across the UK, Malta, and Hong Kong, stated businesses are barely staying afloat. "We're not making any money whatsoever," he said. Kerridge, who operates five restaurants and pubs, added that government taxation policies are "very, very wrong," while Ottolenghi described conditions as "crippling" for cafes, bakeries, and pubs alike.
UK Hospitality reports that three hospitality businesses have closed daily since the start of 2026, with the sector hit by pandemic shutdowns, soaring energy costs, and reduced consumer spending amid the cost-of-living crisis.
VAT disparity with Europe
The UK's standard VAT rate of 20% for hospitality is the second-highest in Europe, trailing only Denmark. Industry advocates argue a reduction to 10% would align the UK with countries like Germany (7%), Ireland (9%), and France (10%).
Kerridge highlighted additional financial pressures, including higher National Insurance contributions, business rates, and minimum wage increases. While supportive of wage hikes, he warned that businesses can no longer pass costs to customers without deterring diners.
Government response and industry concerns
Cabinet minister Pat McFadden acknowledged businesses face higher tax burdens but noted the government must balance competing financial demands. "The chancellor has to make these decisions in the round," he said, citing pressure to increase public spending.
Treasury minister Torsten Bell admitted on BBC Today that higher taxes are impacting hospitality but noted youth employment rates remain stable since 2024. However, a report by former Labour minister Alan Milburn warned of a "lost generation," with over one million young people neither in education, employment, nor training-the highest figure in 12 years.
"Every pound we take, a substantial amount goes to the government in taxation. It's not about profit being dirty-we're trying to regenerate our communities and employ more people."
Ravneet Gill, chef and restaurateur
Limited relief and long-term risks
Chancellor Rachel Reeves recently announced a temporary VAT cut to 5% for children's meals in restaurants over the summer, but Gill dismissed the move as "a poor attempt" that could lead to loopholes and fraud.
UK Hospitality CEO Allen Simpson urged the government to reduce employment costs to encourage youth hiring. Rogan warned that under financial strain, businesses deprioritize training and sustainability initiatives-critical for young workers entering the industry.
Ottolenghi framed the debate as a broader societal issue: "If restaurants close, we risk becoming a society where people sit at home, staring at screens, and never interact. The government lays more taxes on us, yet we employ young people and give them skills."
What's next
The government has pledged 300,000 work experience and training placements, including in hospitality, but industry leaders argue systemic tax reform is needed to ensure long-term survival. With closures accelerating, the sector's future may hinge on whether policymakers heed the chefs' warnings.
