Top UK chefs call for 10% VAT cut for pubs and restaurants

Key developments are emerging from the global stage. Top UK chefs call for 10% VAT cut for pubs and restaurants9 minutes ago Share Save Add as preferred on GoogleMichael Race ,Business reporterandCharlotte Sexton ,Newsnight producerGetty ImagesChefs Ravneet Gill, left, and Tom KerridgeFour top UK chefs and restaurant owners have urged the government to cut VAT for restaurants and pubs as they warned working in the hospitality industry was the "hardest it has ever been". Tom Kerridge, Yotam Ottolenghi, Ravneet Gill and Simon Rogan told Newsnight VAT should be slashed to 10% to ease pressure on businesses and bring rates closer to levels 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 was getting taxation on businesses "very, very wrong".

Cabinet minister Pat McFadden acknowledged the government had "asked business to contribute more", adding "we help them where we can". He said the government was lobbied about tax cuts "all the time", but there was a cost attached. "The chancellor has to make these decisions in the round, netting off all of these demands against the increasing expenditure demands that government also faces by people every day saying 'why can't you spend more on this or this'," McFadden added.

The Details

But Ottolenghi, who has 11 restaurants, cafes and delis, described the situation was "crippling" - not just for his own business, but for others running bakeries, cafes, and pubs. "Every pound that we take, a substantial amount of it just goes to the government for a different taxation," he said. The call from the famous chefs follows a tough few years for the hospitality industry.

The height of the Covid pandemic brought trade to a halt before energy prices soared due to the war in Ukraine and pushed up costs across the board with little respite since. Customers hit by the cost of living have also cut back on spending, especially on dining out recently. While various support packages, such as the pandemic-era Eat Out to Help Out scheme and previous VAT relief provided a temporary a boost, three hospitality businesses have gone under every day since the start of 2026, according to the industry body UK Hospitality.

Value added tax, or VAT, is the tax people have to pay when buying goods or services. The standard rate of VAT in the UK is 20%. The rate, which applies to UK hospitality businesses, is the second highest in Europe behind Denmark, according to UK Hospitality.

It has repeatedly argued for VAT to be lowered near to rates seen in Germany (7%), Ireland (9%), France (10%), Italy (10%) and Spain (10%). Kerridge, who runs five restaurants and pubs, said there were "so many different factors" driving costs up and eroding margins, including government policy decisions such as higher rates of National Insurance for employers, business rates and the minimum wage.

The development has drawn wide international attention, with diplomatic circles watching closely.