We’re partnering with UKHospitality on its #TaxedOut campaign and calling on the Government to take action to support the hospitality industry
Earlier this year, we warned that 2025 could be one of the toughest years on record for hospitality. The outlook has only worsened, so in response, 50 chefs, operators, writers and industry voices have come together to write an open letter to Rachel Reeves, calling for urgent government action to save our independent restaurants, pubs, bars and cafés.
We know that, in a world facing ongoing global conflicts and crises, highlighting the challenges of hospitality may seem secondary. But the reality is stark: costs continue to rise while consumers are unable to afford higher prices. Operators are trapped in an unsustainable position, leading to closures, job losses and real risks to one of the UK’s most vital industries. Hospitality is not a luxury. It is the UK’s third-largest employer and a critical driver of the economy. Without bold intervention, its future is in jeopardy.
Here is the letter in full:
Dear Rachel Reeves,
We are a group of chefs, hospitality professionals, and journalists witnessing restaurants, bars, pubs, and cafés in London – and across the rest of the UK – being squeezed out of existence. The hospitality industry is an integral part of all our lives. We’ve built careers in kitchens, marked milestones in restaurants, and fallen in love in pubs. We’re not prepared to stand by and watch it wither.
Already razor-thin margins for operators are dissolving into nothing. Rising rent and energy costs, hefty tax burdens, a customer base grappling with a cost-of-living crisis, and higher wage bills – as a result of the increased National Insurance contributions introduced in the last Budget – have created a perfect storm, one that only those with the deepest pockets can ride out.
A May survey by UKHospitality has shown that one-third of hospitality businesses are operating at a loss, 76% have had to increase prices and 63% have reduced the hours available to staff. ONS figures show payrolled employees in hospitality fell by over 124,000 between May 2024 and May 2025. The August 2025 Hospitality Market Monitor report shows that the number of UK hospitality venues fell by 374 in the first six months of the year, equating to 62 net closures per month, or two per day.
We’re calling on the Government to act to support an industry that is a leading creator of jobs across the country and is accessible to people from all backgrounds, yet is being stifled by an unfair tax burden. Raising prices to combat increased costs isn’t a sustainable solution. Impactful change must come from the Government, which is why we’re backing the three key demands of UKHospitality’s #TaxedOut campaign:
- Cut the rate of VAT down from 20%
- Fix NICs to boost jobs
- Reduce business rates to give long term support to the high street.
Our hospitality sector is subjected to 20% VAT – the European average is around 10% to 13%. During the pandemic, VAT was slashed to 5%, then later raised to 12.5%, to successfully support the industry and stimulate the economy. The sector is in crisis again, so why not cut it again?
Tax relief measures would have the quickest and biggest positive impact on the sector, helping to keep our beloved restaurants, pubs and cafes open. Independents, in particular, are striving to keep their costs down and run lean operations, but these taxes are making it increasingly difficult to remain viable.
We understand the Government is trying to plug a hole in public finances but the policies currently applied to hospitality are suffocating it. A healthy hospitality industry can contribute so much to the economy, but as things stand, the outlook is bleak – more closures and more job losses.
We’re calling on everyone who works in the industry, everyone who wants to see their local pub with pints stacked on the bar rather than windows boarded up, and their favourite restaurant filled with hungry diners rather than posting closure announcements on Instagram, to help amplify our call to the Government and secure meaningful relief. Businesses can use this tool and individuals can use this tool to directly write to the Government and make your voice heard, and everyone can share our letter on socials using the hashtag #taxedout
Signed
Adam Hyman, Code Hospitality
Alina + Joel Falconer, Wilsons
Anna Sebastian, Anna Sebastian Hospitality Consultancy + Celebrate Her
Anna Sereno, E Pellicci
Anna Tobais, Cafe Deco
Ben Smith, London On The Inside
Catherine + Gavin Hanly, Hot Dinners
Charlie Carr, Papi
Chavdar Todorov, SlowBurn London
Christina Dean, London On The Inside
Dara Klein, Tiella
Daniel + Holly Eilenberg, Half Cut Market
David Wolanski, Chick’n’Sours
Dom Fernando, Paradise
Ed McIlroy, The Plimsoll + Tollington’s
Elliot Hashtroudi, Camille
Hannah Drye, Dough Hands
Imad Alarnab, Imad’s Syrian Kitchen + Aram
Jackson Boxer, Brunswick House, Dove + Henri
Jay Claus + Syrus Pickhaver, Rake
Jay Patel, Legare
Jimi Famurewa
Joe Haynes, Cloth
Jon Rotheram + Tom Harris, The Marksman
Jules Pearson, London On The Inside
Katya Milavic Davies, Lulu’s + Llewelyn’s
Lily Jones, Lily Vanilli
Mandy Yin, Sambal Shiok
Marina O’Loughlin, Financial Times
Missy Flynn + Gabriel Pryce, Rita’s
Nemanja Borjanovic, Ibai
Nick Molyviatis, Alexander Gkikas + Sirichai Kularbwong, Singburi
Nicholas Fitzgerald, Tacos Padre
Oli Marlow, Simon Rogan Restaurants
Ravneet Gill, Gina
Ryan Chetiyawardana, Mr Lyan
Scott Collins, Meatliquor
Simon Mitchell, KERB
Simon Rogan, Aulis
Vivek Singh, Cinnamon Club
Warwick Smith, Renegade Wine
Zoe Paskin + Layo Paskin, Palomar, The Barbary, Blue Posts + Evelyn’s Table
