Britain's leading chefs, including Tom Kerridge and Yotam Ottolenghi, are calling on Chancellor Rachel Reeves to cut VAT to 10% for restaurants, warning that rising costs and high taxes are pushing the industry toward catastrophe.
A coalition of Britain's most celebrated chefs is urging Chancellor Rachel Reeves to slash VAT for restaurants, warning that the industry faces a looming catastrophe without immediate relief.
Tom Kerridge, Yotam Ottolenghi, Simon Rogan, and Ravneet Gill are among the culinary figures calling for a reduction in VAT to 10 percent, arguing that current tax burdens are pushing businesses to the brink. The chefs say the government has provided support to other hospitality sectors through business rate relief and lower VAT on children's meals, but restaurants have been left to struggle under a 20 percent VAT rate, one of the highest in the world.
Tom Kerridge, whose Hand & Flowers was the first gastropub to earn two Michelin stars, stated that most of his businesses are sitting still or losing money, with margins completely eroded by government hikes. He described Labour's approach to hospitality as very wrong, despite supporting the party before the 2024 election. Kerridge noted that the one thing that could release pressure is a VAT reduction to align with European levels, allowing operators to reinvest and breathe.
Yotam Ottolenghi, who runs 11 restaurants, cafes, and delis, said the challenges have never been as hard, with every pound going toward various taxes. He highlighted that VAT is back at 20 percent, coupled with inflation in energy and ingredient costs, making everything more expensive. Simon Rogan, chef of the three-Michelin-starred L'Enclume in Cumbria, said it has never been more difficult in his 24 years of running the restaurant, with no profit margin and barely keeping afloat.
Pastry chef and Junior Bake Off presenter Ravneet Gill added that higher employment costs have deterred her from hiring teenagers, as the wage for an 18-year-old equals that of a more experienced 23-year-old, making it unaffordable to offer first jobs. The chefs criticized employment cost increases, including minimum wage hikes and National Insurance contributions over the past two years, as well as higher business rates from April despite a U-turn on pubs and music venues.
The government earlier this month announced a VAT reduction to 5 percent for children's meals and family attractions between June and September, but campaigners argue this must be extended. The chefs emphasize that a broader VAT cut would provide relief across bakeries, cafes, pubs, and restaurants, preventing closures and job losses. The industry also faces a consumer squeeze from Middle East conflict impacts on household bills, while inflation spikes ingredient and utility costs.
Tom Kerridge, who was a prominent business supporter of Labour before the 2024 election, said ministers seem to listen but are getting it very wrong in this area. The chefs are calling for immediate action to avoid a crisis that could devastate the UK's dining scene and the livelihoods of thousands of workers
VAT Restaurant Industry Hospitality Crisis Rachel Reeves Chefs Protest
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