There is no escaping it, the UK hospitality industry is in trouble.
As operating costs continue to rise against a canvas of falling consumer confidence, businesses up and down the country are reducing their opening hours or shutting their doors altogether. Every week another restaurant announces its closure. Independent pubs that have served generations disappear almost overnight. Boutique hotels are scaling back. Cellar doors and rural tourism businesses are feeling the squeeze.
This is not just a difficult trading period. This is a long-term problem that threatens one of (if not the most) valuable industries in the UK.
I’ve spent most of my career working in hospitality, this issue is close to my heart. I have seen and felt the passion, creativity and resilience of the industry. Behind every small hotel, restaurant, vineyard or country pub is a team who genuinely care about creating the best experiences for their customers.
Yet the current conversation is all about businesses just trying to survive.
I think hospitality businesses and their customers are worth more, they deserve to grow, innovate and thrive, not merely fight another battle in order to keep the lights on.
The Heartbeat of Our Communities
Hospitality has always been much more than just food and drink.
Our pubs are where friendships begin, sporting wins and losses are celebrated or commiserated, and communities come together. Restaurants are the backdrop for birthdays, anniversaries, engagements and family reunions. Hotels invite visitors to explore our culture, food and wine. Cellar doors introduce people to regional life and landscapes they may never have seen before.
Across Britain, hospitality businesses define the character and people of our cities, towns and villages. Hospitality is part of our DNA.
A Major Employer
According to UKHospitality, the industry is the third largest employer in the UK and is growing faster than any other sector, directly employing around 3.6 million people and contributing around £100 billion to the economy each year.
For both urban and rural communities, hospitality is a source of year-round employment and supports countless businesses – from farmers, food producers and local attractions, to taxi drivers, retailers and event organisers. The economic ripple effect of hospitality extends far beyond the restaurant table.
And, for the most part, hospitality is protected from AI and its relentless job-robbing - a career in hospitality is generally more secure long term than many other industries – it is after AI can never replicate real human connection.
However, since Autumn 2025, nearly 90,000 hospitality jobs have been cut - a direct effect of increases in employer NICs, minimum wage and operating costs to name just a few.
The Cost of Simply Staying Open
The challenges facing hospitality businesses today are well documented.
Increases in energy costs, National Insurance, business rates, rents, wages alongside food price inflation all add pressure to already tight belts.
At the same time, consumers’ pockets are not as deep as they used to be, eating out is a luxury for many.
This creates a precarious balancing act between supply and demand, with profit margins squeezed to almost nothing for many outlets.
The result is a sector working twice as hard for half as much.
What’s VAT Got to Do With It?
With up to four hospitality businesses closing in the UK every day, there has to be a way for businesses to make profit to keep the bank manager and bailiffs from the door.
Every time we dine out or stay in a hotel in the UK, we pay VAT (which businesses collect on behalf of the government). While customers can see the final price, they don’t always appreciate how little of that payment remains within the business itself.
During the pandemic, the temporary reduction in hospitality VAT proved what lower rates could achieve. Many businesses were able to retain staff, invest in their business and basically keep the lights on in difficult circumstances.
We pay 20% VAT for hospitality in the UK - one of the highest rates in Europe, (in France, Spain and Italy it’s 10%, in Germany it’s 7%).
Today, there is a call for a fairer approach.
Asking the government to cut the UK VAT for hospitality by 10% is one way to help the industry get its mojo back. OK, cutting the VAT permanently is not going to make a massive difference immediately, but it’s a start.
Lead by Chef, Tom Kerridge, I am a big fan of the #VATstheproblem campaign which is asking for a permanent cut to VAT from 20% to 10%. Since its launch, the petition has reached nearly 300,000 signatures (as of July 2026) of the goal of 1 million – yes, there’s still a ways to go.
The campaign argues that reducing VAT will help increase business profits, which would have a knock-on effect for investment, better cash flow, whilst protecting jobs – allowing businesses to focus on growth and employment, rather than continuing to cut costs, people, quality and potentially their business altogether.
One silver lining - the UK government under Andy Burnham appears to be pro-hospitality, (as of July 2026) with rumours circulating that the sector’s VAT and National Insurance may be reduced. Time will tell.
Rebuilding Pride in Hospitality Careers
Alongside financial pressures is another major challenge. Talent.
Following Brexit and the pandemic, many experienced hospitality professionals literally disappeared overnight. I felt this with friends from Europe whom I worked with at a hotel asking what they had done wrong. Some left the UK, a few retired early, others changed jobs seeking a better work-life balance or higher salary.
The result has meant an ongoing recruitment challenge across the industry.
In my humble opinion, hospitality is one of the most rewarding careers available, and filling this recruitment gap requires a strong campaign focused on instilling pride and passion for the industry, highlighting the diverse, long-term roles available to everyone, no matter their age, experience or education.
The world of hospitality is one for the curious, creative mind - it opens the door to travel, it allows you to develop leadership skills and progress quickly based on talent rather than qualifications. Few industries offer such scope, excitement and responsibility in one career.
The challenge now is rebuilding a passion for hospitality in the UK. OK, Basil Fawlty aside (still one of my favourite GMs), it’s about following visionary, British personalities who celebrate and advocate for hospitality such as Robin Hutson (Pig Hotels), Franck Arnold (The Savoy), Thomas Straker (hospitality entrepreneur), Kate Nicholls (UKHospitality) and of course, Tom Kerridge, just to name a few of my faves.
Hospitality Deserves Better
This debate is not about asking for special treatment.
It is about recognising the role hospitality plays within our economy and society.
A healthier hospitality sector creates more vibrant high streets, increases tourism and provides employment for everyone, whether you’re looking for a first job or having a mid-life career change.
The question is not whether hospitality contributes enough. It already does. The question we should be asking is whether the current policy allows businesses enough breathing space to grow and contribute to the economy.
Throughout my career, I've been lucky to work with some of the most talented chefs, hoteliers, vineyard owners, and more. What unites them is a passion, generosity and celebration of all things that just make life great – food, wine, culture, history and people.
If we continue to lose independent hospitality businesses at the current rate, we lose far more than places to eat or stay.
Hospitality has always been one of Britain's greatest strengths. It deserves policies that allow it not just to survive, but to flourish.
Why I'm Supporting the Campaign for Fairer VAT
If your business is motoring in survival mode, investing in career pathways, training and recruitment is not high on the agenda.
With businesses under more pressure than ever before, reducing VAT will make a difference.
This isn't about asking for special treatment. It's about creating a fairer playing field for an industry that sits at the heart of our culture.
I believe hospitality should thrive, not just survive.
If you want to protect your favourite pub, restaurant, café, hotel or music venue, please support the campaign by signing the petition calling for a fairer 10% VAT rate for UK hospitality.