A coalition of leading British chefs has written to the Treasury demanding an emergency reduction in VAT to 10 per cent for pubs and restaurants, warning that the hospitality sector is “on the brink” of widespread collapse without immediate fiscal intervention.
The letter, coordinated by the chef Tom Kerridge and signed by figures including Angela Hartnett, Michel Roux Jr and Raymond Blanc, argues that the current 20 per cent rate is unsustainable for businesses already battered by rising energy costs, inflation and the lingering effects of the pandemic. It calls for a targeted cut to 10 per cent for the next two years, modelled on the temporary reduction applied during the Covid crisis, which the signatories say was instrumental in saving thousands of venues.
The Treasury has so far declined to comment on what it described as “speculation about fiscal events”, but sources indicate that the request is unlikely to be granted before the spring Budget. The sector contributes over £130 billion annually to the economy and employs around 3.5 million people, according to UKHospitality, which has separately lobbied for a lower rate.
The chefs’ intervention comes as official figures show pub closures accelerating, with 383 venues shutting permanently in the first half of 2023. The British Beer and Pub Association estimates that two-thirds of pubs are now barely breaking even. “We are at the edge of a lost decade for British hospitality,” Kerridge said. “A VAT cut is not a giveaway. It is a lifeline.”
Critics argue that a targeted cut would disproportionately benefit large chains and do little to ease broader cost pressures. But the chefs maintain that the measure is essential to preserve the UK’s culinary reputation and protect jobs. “Without intervention, we will see a hollowing out of our high streets and a loss of skills that took generations to build,” the letter states.
The Treasury is understood to be considering a broader package of business rates relief rather than a VAT cut, which would require legislation and cost an estimated £3 billion per year. A decision is expected in the Chancellor’s autumn statement.
For now, the hospitality industry waits. The chefs’ warning is stark: act soon, or watch a pillar of British culture crumble.
