More than 500 leading UK chefs and restaurateurs have signed an open letter to the Chancellor, calling for an emergency reduction in VAT to 10 per cent. The group, representing establishments from Michelin-starred venues to local gastropubs, warns that without immediate fiscal intervention the hospitality sector faces a wave of closures before the end of the year.
The letter, coordinated by the industry group Hospitality United, cites rising energy costs, food inflation, and the lingering impact of the pandemic as factors pushing businesses to breaking point. It states that the current 20 per cent VAT rate is unsustainable for an industry operating on thin margins. A cut to 10 per cent, they argue, would provide a lifeline, allowing businesses to invest, retain staff, and avoid price increases for consumers.
Signatories include Tom Kerridge, Angela Hartnett, and Michel Roux Jr. They join a broader coalition of trade bodies, including UKHospitality and the British Institute of Innkeeping, which have lobbied for targeted support. The chefs describe the situation as a national emergency, warning that the loss of hundreds of venues would not only damage the economy but also erode Britain’s cultural and culinary heritage.
The Treasury has so far resisted calls for a VAT cut, preferring to focus on broader measures such as the energy price guarantee for businesses. However, hospitality leaders argue that these measures are insufficient, pointing to data showing that one in four hospitality businesses is at risk of failure without further aid. They also note that the sector has not fully recovered from the pandemic, with many operators still servicing debt taken on during lockdowns.
A spokesperson for the Treasury said: “We recognise the challenges facing the hospitality sector and continue to engage with industry representatives. All options remain under review, but any tax decisions will be made in the context of fiscal responsibility.”
The letter comes ahead of the autumn statement, where the Chancellor is expected to outline further economic support. Industry insiders believe the campaign could gain traction if the economic outlook worsens, particularly if inflation remains above 10 per cent into next year.
Analysts caution that while a VAT cut would provide short-term relief, it would also reduce government revenue at a time when public finances are under strain. The Institute for Fiscal Studies estimates that a temporary cut to 10 per cent could cost £5 billion. Critics argue that targeted grants or business rate relief would be more effective.
Nevertheless, the chefs’ intervention underscores the depth of feeling within the industry. As one signatory put it: “We are not asking for a handout. We are asking for a level playing field to survive. The government must act now before it is too late.”
