Chefs endorse Burnham’s VAT cut as hospitality sector hits ‘breaking point’
Prominent restaurateurs argue a reduction in value-added tax is the only mechanism to save jobs, citing 21 venue closures per week amid rising operational costs.
A coalition of top chefs and restaurateurs has publicly endorsed Andy Burnham for prime minister, backing his proposal to reduce the value-added tax (VAT) on the hospitality sector from 20 per cent to 10 per cent. The endorsement, led by restaurateur Tom Kerridge, positions Burnham, the Labour candidate in the Makerfield byelection, as a viable alternative for an industry described as being at a "full breaking point."
Kerridge, whose pubs hold three Michelin stars between them, argued that the hospitality sector should unite behind Burnham, citing his record as Manchester mayor and his understanding of the nightlife and entertainment landscape. The campaign, titled “VAT’s the problem”, highlights that UK rates are significantly higher than those in European nations, where VAT in pubs, restaurants, and hotels sits at 10 per cent in France, Spain, and Italy, and just 7 per cent in Germany.
The push for a tax cut comes amid reports that hospitality venues are closing at a rate of 21 per week. Kerridge attributed this decline to a combination of rising business rates, employer national insurance, minimum wage hikes, energy bills, and food inflation. He criticised the current government for being run by "spreadsheets in the Treasury" rather than operators, suggesting that Chancellor Rachel Reeves lacks a fundamental understanding of the sector.
While Reform UK leader Nigel Farage has also pledged to cut hospitality VAT to 10 per cent, Kerridge explicitly rejected the party’s plan to fund the reduction by reinstating the two-child benefit cap. Kerridge described Farage’s approach as an "easy photo opportunity" that would push more children into poverty, a stance he stated he could not support.
Other industry figures, including entrepreneur Sacha Lord and chef Thomasina Miers, have voiced similar concerns about the current Labour leadership. Miers, co-founder of Wahaca, argued that recent policies have "clobbered young people" and made it harder for workers to enter the labour market. Michelin-starred chef Tommy Banks described the industry as being at a "crisis point," urging an urgent alignment with European tax rates to prevent further closures of independent businesses.
Burnham, who is expected to launch a leadership challenge to Keir Starmer if he wins the Makerfield byelection, has long campaigned for a VAT reduction. Lord, Burnham’s adviser, confirmed that the candidate has "always supported" the view that a tax cut is the "one single mechanism that can save many hospitality businesses and jobs."