'Twenty percent is probably one of the highest in the world,' Michelin-starred chef Sat Bains said, placing VAT at the centre of his appeal to ministers. He urged the government to cut the standard 20 percent rate, arguing that lower VAT would ease pressure on restaurants as footfall and bookings fall. Bains made the comments after running a one-day breakfast pop-up at No.8 Deli in West Bridgford, Nottinghamshire to support a local independent during what he described as the hardest trading period he had seen in 20 years. There's no date for a government decision on cutting VAT, the BBC reported.

"The VAT is the problem in the UK, especially in our industry," Bains said, as he described trade that has softened and customers booking closer to the date they wish to dine. The 55-year-old, who runs a two-star Michelin restaurant in Nottingham, said a VAT reduction "would help," but that wider cost-of-living uncertainty remains the biggest drag on demand.

At the pop-up Bains and his team converted elements of the restaurant breakfast menu into deli-style dishes to keep price points attractive while absorbing higher input and staffing costs. Menu items included Earl Grey prunes and crumpets with smoked trout, a small example of how operators are reworking offers to retain customers without passing every cost on to the guest.

Practical effects are visible in booking patterns. Bains said his restaurant’s previous three-month waiting list has shortened to two weeks, reflecting a broader consumer caution that hits restaurants first. Small independents such as No.8 Deli rely on street-level footfall and collaboration with larger names to sustain trade.

John Hyman, the deli’s owner, said cutting overheads would boost the local high street and described the goal as sustaining "a thriving independent community of shops," rather than competing against them.

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The call for a VAT cut sits alongside recent policy moves for hospitality. Earlier this month Prime Minister Andy Burnham announced a 20 percent reduction in business rates for pubs, social clubs and music venues in England, telling those sectors "the cavalry is coming." Some operators welcomed that measure, but hoteliers and many restaurateurs questioned why the relief didn't extend to their businesses.

Industry representatives point to VAT as a recurring line item that erodes every quarter’s turnover, constraining reinvestment and hiring even as operators face rising utility bills, National Insurance contributions and food-price inflation. The BBC reported that earlier this year four other leading UK chefs and restaurant owners had urged the government to reduce VAT for restaurants and pubs, an industry push that highlights the depth of concern about current taxation.

UK Hospitality told the BBC that the 20 percent rate applied to hospitality businesses is the second highest in Europe behind Denmark, a comparison the sector uses to argue for targeted tax relief. For restaurateurs the argument is simple: business rates relief for pubs is useful, but it leaves a separate and ongoing pressure on margins that only a lower VAT rate would address.

Policy makers face a trade-off. Cutting VAT would reduce the tax on every sale and could lower prices or protect margins, depending on how operators respond. But ministers haven't set a timeline for such a move, and the Treasury must weigh the fiscal cost against other measures aimed at supporting high streets and cultural venues.

Bains framed his intervention as practical support for independents as much as a plea for tax change. The pop-up at No.8 Deli was explicitly intended to drive spending into the local community and keep smaller traders workable while larger policy decisions are debated in Whitehall.

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There is no date for a government decision on cutting VAT, the BBC said. Originally reported by BBC.

This article was created with AI assistance.