Top UK chefs including Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan are pushing the government to slash VAT on pubs and restaurants from 20% to 10%. The group told BBC Newsnight that halving the tax rate is essential to relieve crushing financial pressure on the hospitality sector.
The hospitality industry faces a perfect storm. Labour costs have surged, energy bills remain elevated, and consumer spending has contracted as households tighten budgets. Independent pubs and regional restaurants operate on razor-thin margins. Many establishments have already closed in the past two years. A 10% VAT cut would preserve thousands of jobs and keep beloved neighborhood venues alive.
The chefs framed this not as special pleading but as economic sense. Lower VAT encourages spending, which boosts employment and tax revenue elsewhere in the economy. Tourism also suffers when restaurants shutter. The hospitality sector employs 3.2 million people across the UK and contributes tens of billions annually to GDP.
The UK previously reduced VAT on hospitality to 5% during the pandemic as emergency relief. That temporary measure demonstrated both feasibility and impact. Restoring a permanent 10% rate would split the difference, offering real relief without recreating the full pandemic subsidy.
This push reflects broader frustration within the industry. Chefs like Kerridge and Ottolenghi command platforms and credibility beyond their restaurants. Their public intervention signals that this isn't a fringe demand but a mainstream position among culinary leadership. The hospitality sector has repeatedly warned the government that without intervention, dozens more closures loom.
Whether the Treasury will act remains uncertain. VAT cuts reduce public revenue. But hospitality leaders argue that lost tax from closures and unemployment would dwarf the cost of a 10% rate.