Michelin-starred chef calls for VAT cut for restaurants
Summary
Michelin-starred chef Sat Bains has asked the UK government to lower the 20% VAT (tax) on restaurants to help the struggling hospitality sector. While the VAT cut would be useful, Bains says the larger problem is people spending less due to high living costs.Key Facts
- Sat Bains, a Michelin two-star chef in Nottingham, hosted a breakfast pop-up event to support local businesses.
- The UK restaurant VAT is 20%, one of the highest rates in Europe behind Denmark.
- The government recently reduced business rates by 20% for pubs, social clubs, and music venues, but not for restaurants or hotels.
- Bains states that the high VAT is a major problem for restaurants and urges the government to reduce it.
- High costs of living are making customers more cautious, reducing advance bookings at restaurants.
- John Hyman, owner of No.8 Deli in West Bridgford, supports lowering business costs to help local independent shops and restaurants thrive.
- Earlier in 2024, several top UK chefs called for cutting VAT on pubs and restaurants to 10%.
- VAT is a tax included in the price of goods and services; reducing it would lower the cost to customers directly.
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