Top UK Chefs Urge 10% Hospitality VAT as Closures Hit 3 Businesses a Day
Updated
Updated · BBC.com · May 29
Top UK Chefs Urge 10% Hospitality VAT as Closures Hit 3 Businesses a Day
4 articles · Updated · BBC.com · May 29
Four prominent UK chefs called for VAT on pubs and restaurants to be halved to 10% from 20%, saying the sector is at a survival point rather than seeking a boost to profits.
20% VAT leaves UK hospitality with Europe’s second-highest rate after Denmark, while operators also face higher employer National Insurance, business rates, minimum-wage costs and weaker customer spending.
Three hospitality businesses have been going under each day since the start of 2026, according to UK Hospitality, after years of disruption from Covid and the energy-price shock tied to the war in Ukraine.
28% of all 18- to 20-year-olds work in hospitality, and chefs argued easing tax pressure would protect entry-level jobs as more than 1 million young people are now out of education, employment or training.
The government acknowledged businesses want tax relief but said cuts carry a fiscal cost, even after Rachel Reeves last week reduced VAT to 5% on some attractions and children’s restaurant meals over the summer.
As three hospitality venues close daily, can the UK afford not to slash the sector's crippling 20% VAT rate?
If a VAT cut saves UK restaurants, will diners see lower bills or will owners simply pocket the difference?