03/06/2026
š½ļø What if cutting VAT from 20% to 10% could help save hospitality businesses?
That's exactly what some of the UK's best-known chefs are calling for this week, as they warn the industry is facing some of the toughest conditions they've ever experienced.
And honestly, the backdrop is pretty sobering.
Industry figures suggest three hospitality businesses are closing every day in 2026.
Not because restaurants and pubs have suddenly become unpopular.
But because operators are trying to balance rising wages, higher employment costs, business rates, energy bills and changing consumer spending habits... all at the same time.
Whether VAT is the answer or not, one thing feels hard to argue with... hospitality is operating with very little room for error, and when margins become that tight, even small costs and inefficiencies start to matter a lot more than they used to.
Would reducing VAT to 10% make a meaningful difference to hospitality businesses?
Tom Kerridge, Yotam Ottolenghi, Ravneet Gill and Simon Rogan told BBC Newsnight VAT should be halved to ease mounting pressure on the hospitality industry.