Tom Kerridge leads #VATstheproblem campaign for permanent VAT cut

Chef and publican Tom Kerridge has launched a new campaign, calling on the Government to permanently slash value-added tax (VAT) to 10% for hospitality businesses.

This comes as hospitality continues to battle increasing labour and operational costs, with some businesses even forced to close their doors for good.

Backed by leading trade bodies and high-profile chefs, the new #VATstheproblem campaign argues that a lower VAT rate would help businesses reinvest, create jobs, and remain competitive with European counterparts – where hospitality VAT rates are generally lower than those in the UK.

What is the #VATstheproblem campaign?

The #VATstheproblem campaign is a petition led by Tom Kerridge, aiming to secure a permanent 10% VAT rate for the hospitality sector.

Kerridge – who owns several renowned restaurants and gastropubs across Buckinghamshire – launched the campaign with the goal of “bringing the country together to call for a fairer 10% VAT rate for hospitality”.

At the time of writing, the petition currently has over 64K signatures, and is backed by major trade bodies, including UKHospitality, the British Beer and Pub Association, and the British Institute of Innkeeping.

In the UK, the current VAT rate is 20%, which applies to most food, alcoholic and non-alcoholic drinks, and hotel accommodation. Behind Denmark, the UK has the second-highest rate in Europe.

Industry figures say this leaves British hospitality businesses facing a heavier tax burden than many of their European counterparts, with hospitality VAT rates standing at 10% in Spain, Italy and France, 9% in Ireland, and 7% in Germany.

While the Government introduced a temporary VAT cut on children’s meals over the summer months – which would slash rates from 20% to 5% – many hospitality operators argued that the measure falls short of the wider support needed to address cost pressures across the sector, while one London pub hit back with a “grown up” kids menu consisting of dishes like Burgundy snails, anchovy butter toast, and beef and oyster pie.

Kerridge, along with fellow chefs Yotam Ottolenghi, Ravneet Gill and Simon Rogan, expressed their concerns on BBC Newsnight.

Ottolenghi, as reported by The BBC, commented: “We’re not making any money whatsoever, and we’re just keeping our heads above water. Every pound that we take, a substantial amount of it just goes to the government for a different taxation.”

Why hospitality is calling for change

Hospitality’s call for reduced VAT is just one of many battles the sector has faced so far this year.

With the rise in employer National Insurance Contributions (NICs) introduced last year and increased National Minimum Wage (NMW) from April 2026, labour costs have placed additional pressure on operating margins.

This, along with the increase in business rates, has pushed businesses to make difficult operational decisions to offset rising costs, according to data from UKHospitality.

This includes cutting jobs (64%), cancelling investment plans (51%), and reducing trading hours (42%). In more drastic circumstances, around one in seven venues reported that they’d be forced to close.

Data from the Lords Library also reported falling demand for goods and services and rising energy costs as key challenges for hospitality businesses, cited by 17.8% and 16.1% of respondents, respectively.

In terms of desired policy changes, UKHospitality found that a reduction in VAT had the strongest level of support, with 89% of respondents backing the measure. A permanent reform of business rates (74%) and changes to NICs (65%) were also widely supported.

What happens next for the campaign?

The #VATstheproblem campaign is set to officially launch to consumers on 1 July, with organisers hoping that this added support will help convince ministers to consider a reduced VAT rate for the sector.

For now, the campaign has launched its own toolkit – complete with ready-made posters, social media graphics and beer mats – so that businesses and consumers can prepare for the launch date. 

This includes downloadable marketing materials, digital assets, QR codes linking to the petitions, and campaign messaging to help venues promote the initiative to customers, staff, and local communities.

“Our sector is under huge pressure. We know it. We live and breathe it every day,” Kerridge said. “We know that the key to unleashing hospitality’s potential to grow and thrive into the future comes through a VAT cut. We’re making sure the Government knows that too, and we need your help.”

“Now is the time for hospitality to galvanise behind this campaign. Be part of a movement that aims to get hospitality recognised and taxed in a much fairer way. I know that the Government is listening, but we do need to push hard.”

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Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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