Four of the UK's top chefs and restaurant owners have urged the government to slash VAT for restaurants and pubs, warning that the hospitality industry is facing its toughest period ever.
Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan told BBC Newsnight that VAT should be reduced to 10% to ease pressure on businesses and align rates with those across Europe.
"We're not making any money whatsoever, and we're just keeping our heads above water," warned Rogan, while Kerridge said the government is getting taxation on businesses "very, very wrong."
Cabinet minister Pat McFadden acknowledged the government had asked businesses to contribute more, adding "we help them where we can." He noted that the government is lobbied about tax cuts "all the time," but there is a cost attached.
The chefs' plea comes after a tough few years for the hospitality sector, including the pandemic, soaring energy prices from the war in Ukraine, and customers cutting back due to the cost of living crisis. According to UK Hospitality, three hospitality businesses have gone under every day since the start of 2026.
Value Added Tax (VAT) is currently at 20% for UK hospitality businesses, the second highest in Europe behind Denmark. The industry has repeatedly called for a reduction to rates seen in Germany (7%), Ireland (9%), France (10%), Italy (10%), and Spain (10%).
Kerridge, who runs five restaurants and pubs, said rising costs—including higher National Insurance for employers, business rates, and the minimum wage—have eroded margins to a breaking point. "It just doesn't work because it will stop people coming out," he said.
Pastry chef and author Ravneet Gill, who opened her first restaurant a year ago, said she "never imagined it would be this tough." Rogan, with nine Michelin stars across his group, called VAT "a killer."
While the chefs support the minimum wage increase, they argued a VAT cut from 20% to 10% would "allow operators to breathe" and reinvest in their businesses. They stressed it is about survival, not just passing savings to customers.
Last week, Chancellor Rachel Reeves announced a VAT reduction from 20% to 5% for certain attractions over the summer, including children's meals in restaurants and cafes. But Gill called it a "very poor attempt" that would lead to loopholes and fraud.
The hospitality sector is a major employer of young people, with 28% of all 18-20-year-olds working in it, according to the Institute of Fiscal Studies. However, job opportunities are shrinking, with over one million young people not in education, employment, or training—the highest level in over 12 years.
Treasury minister Torsten Bell told the BBC's Today programme that employment rates for 18-25-year-olds are unchanged since 2024, but acknowledged higher taxes are having an impact.
Allen Simpson, chief executive of UK Hospitality, said the solution is to reduce the cost of employment, making it "economically beneficial to employ young people once again."
Ottolenghi warned that without action, society risks losing the social fabric provided by restaurants and pubs. "We end up as an industry taking so much of the burden... Those [taxes] could come down quite easily for us because we employ all these young people and we give them skills."