Four leading UK chefs are pressing ministers to cut hospitality VAT from 20% to 10%, warning pubs and restaurants are under mounting financial strain.
Four prominent UK chefs and restaurant owners have urged the government to cut VAT for pubs and restaurants to 10%, warning that parts of the hospitality industry are struggling to stay viable after years of rising costs.
Tom Kerridge, Yotam Ottolenghi, Ravneet Gill and Simon Rogan told BBC Newsnight that lowering the rate from the UK’s standard 20% would ease pressure on operators and bring the sector closer to hospitality tax rates in several European countries.
The appeal comes after a difficult period for restaurants, cafes and pubs. The industry was hit first by Covid-era closures, then by higher energy bills linked to the war in Ukraine, wider inflation and customers cutting back on eating out during the cost-of-living squeeze.
Rogan, whose restaurant group holds nine Michelin stars across sites in the UK, Malta and Hong Kong, said businesses were under severe pressure. “We’re not making any money whatsoever, and we’re just keeping our heads above water,” he told the programme.
UK Hospitality says three hospitality businesses have closed every day since the start of 2026. The trade body has repeatedly argued that the UK’s 20% VAT rate for hospitality is high by European standards, pointing to lower rates in Germany, Ireland, France, Italy and Spain.
Kerridge, who runs five restaurants and pubs, said operators were facing several cost pressures at once, including employer National Insurance, business rates and the minimum wage. He and the other chefs said they supported higher minimum wages, but argued that a VAT cut would give businesses room to reinvest rather than simply lower prices for diners.
Cabinet minister Pat McFadden acknowledged that the government had “asked business to contribute more” and said ministers helped companies where possible. But he added that tax-cut requests came with a cost and had to be weighed by the chancellor against other demands on public spending.
The chefs also linked the pressure on hospitality to concerns about youth employment. The sector is a major entry point into work for young people, and the Institute for Fiscal Studies says it employs 28% of all 18- to 20-year-olds. UK Hospitality chief executive Allen Simpson said reducing employment costs would make it more economically attractive for firms to hire young workers.
The government has announced plans for 300,000 work experience and training placements across sectors including hospitality. For pubs and restaurants, the unresolved question is whether ministers will go further on tax as operators warn that closures, staffing pressures and weaker demand are continuing to squeeze the sector.
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