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

Top UK chefs Tom Kerridge, Yotam Ottolenghi, Ravneet Gill and Simon Rogan appeared on BBC Two’s Newsnight and publicly called for the standard VAT rate on pubs and restaurants to be reduced from 20% to 10% as a response to mounting cost pressures on the hospitality sector. The group said a lower VAT would provide immediate relief to struggling venues.

On the programme the chefs gave stark assessments of trading conditions. Kerridge said margins at several of his businesses had been “completely eroded,” with some operating at around 100–115% cost, while Rogan warned that many outlets were simply “keeping their heads above water.” Ottolenghi highlighted higher tax and energy bills as widespread stressors across bakeries, cafés and restaurants. Those comments were echoed in industry reporting and generated significant sector attention.

A VAT cut to 10% would likely ease short-term cashflow and reduce price pressure for consumers, but it would also reduce government tax receipts and require trade-offs in fiscal policy. The UK’s current 20% rate for restaurant services is among the higher levels in Europe, and advocates point to lower rates in other countries as a comparative argument for change. Policy decisions will need to balance industry support with public finances.

The intervention comes amid a broader cost shock for the sector, including rising energy costs, higher minimum wages, and increased business rates, factors that industry leaders say are squeezing profitability. Some ministers and officials have signalled they are willing to consider a rethink of hospitality taxation, though any permanent change would carry long-term budgetary implications. The debate highlights tensions between supporting local employment and managing fiscal constraints.

Market observers and industry bodies say a temporary VAT cut could provide breathing space, but warn it is only one part of a suite of measures needed to restore sustainable margins. Proposals under discussion range from targeted tax credits and temporary relief measures to broader reforms on business rates and energy support. The conversation is expected to continue in the coming weeks as stakeholders press the government for concrete policy responses.