Top UK Chefs Launch Anti-VAT Campaign to Support Hospitality

Sunday, June 21, 2026

A coalition led by chef Tom Kerridge has launched a campaign urging the UK government to reduce the hospitality sector’s VAT rate from 20% to 10% to ease financial pressures on businesses. While the campaign has garnered significant public support, tax experts warn the proposed cut could cost the government £12 billion annually and mainly benefit larger companies without guaranteeing lower prices for consumers.

A coalition of leading figures in the UK hospitality sector has launched a campaign calling for a reduction in the Value Added Tax (VAT) rate applied to their industry. The initiative, led by chef and publican Tom Kerridge, aims to persuade the government to lower the VAT on hospitality services from the current 20% to 10%.

The campaign, known as “VAT’s the problem,” is scheduled to formally engage the public starting 1 July and has already attracted support from more than 220,000 individuals, including prominent chefs and trade organisations. Proponents argue the VAT cut is necessary to alleviate the mounting financial pressures facing the sector, which has seen rising energy costs and employment expenses strain businesses. They contend that lowering VAT would help sustain jobs and keep businesses afloat amid what they describe as a "restaurant recession."

However, the proposal has drawn criticism from tax experts who question its potential efficacy and fiscal impact. Tax Policy Associates (TPA), a thinktank led by tax expert Dan Neidle, projected that the proposed VAT reduction could reduce government revenue by approximately £12 billion annually. TPA cautioned that this loss would come at a time when public finances are already under significant stress and suggested the tax cut might not translate into meaningful price reductions for consumers.

Additionally, TPA highlighted that the relief would not extend to smaller businesses with revenue below the VAT registration threshold, potentially limiting the benefits to larger enterprises. Neidle further argued that, rather than lower consumer costs, the majority of the financial advantage would enhance corporate profits, noting that major chains such as McDonald’s could receive upwards of £400 million in benefits.

The debate over the VAT cut reflects ongoing tensions between efforts to support the hospitality sector’s recovery and broader fiscal policy considerations amid economic challenges facing the UK government. With the campaign poised to gather momentum in the coming weeks, the government faces pressure to balance the interests of an industry facing hardship against the imperative of managing public spending.