Skip to main content
Chefs call for VAT cut to 10% for pubs and restaurants
Cost of Living

Chefs call for VAT cut to 10% for pubs and restaurants

Top UK chefs, including Tom Kerridge and Yotam Ottolenghi, are calling for the government to cut VAT for pubs and restaurants to 10%. This could lead to cheaper meals for students and others. The current standard VAT rate is 20%.

By Ratio Report Editorial 3 min read Via BBC Business
Reviewed ·

Key takeaway

Cutting VAT for pubs and restaurants to 10% could save students £5 on a £20 meal

  • The current standard VAT rate is 20%
  • Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan are among the chefs calling for the change
  • The hospitality industry is facing mounting pressure

What chefs are saying

Top UK chefs are urging the government to cut VAT for pubs and restaurants to 10%. This would be a significant reduction from the current standard VAT rate of 20%. Chefs such as Tom Kerridge, Yotam Ottolenghi, Ravneet Gill, and Simon Rogan are among those calling for the change.

They believe this reduction would help ease the mounting pressure on the hospitality industry.

The chefs are not just thinking about their own businesses, but also about the impact on customers, including students.

How students could benefit

If VAT for pubs and restaurants is cut to 10%, students could see significant savings on their meals. For example, on a £20 meal, students could save £2. This might not sound like a lot, but it can add up over time.

A student who eats out once a week could save around £100 per year, or £8.33 per month. This could be used for other expenses, such as textbooks or travel.

However, it's worth noting that not all students eat out regularly, and some may not be directly affected by this change.

Source

BBC Business

Read original article (opens in new tab)

This article is based on reporting from BBC Business. Ratio Report provides context and analysis for UK students and young adults.

FAQ

Frequently Asked Questions

What is VAT and how does it affect prices? +
VAT, or Value Added Tax, is a type of tax added to the price of goods and services. In the UK, the standard VAT rate is 20%. This means that if you buy a meal for £20, you will actually pay £24, including the 20% VAT. If VAT is cut to 10%, the price of the meal would decrease to £22.
Will this VAT cut definitely happen? +
No, there is no guarantee that the VAT cut will happen. The government has not yet made an official announcement about changing VAT rates for pubs and restaurants. However, the chefs' call for a VAT cut could put pressure on the government to consider the change.
What if I'm a student who rarely eats out? +
If you rarely eat out, you might not be directly affected by this change. However, if you do occasionally eat out with friends or family, you could still see some savings. Additionally, if you're a student who works part-time in the hospitality industry, you might be interested in how this change could affect your colleagues and the businesses you work with.
hospitality VAT chefs

Was this helpful?

More Cost of Living news

All Cost of Living →