Michelin-starred chef Sat Bains has called on the government to cut VAT for the restaurant industry, saying a lower rate would help but that wider cost-of-living pressures must also be tackled. The 55-year-old made the comments after running a breakfast pop-up on Sunday at No.8 Deli in West Bridgford, Nottinghamshire, in support of local businesses during what he described as a difficult time for hospitality nationally.
Bains, who has a two-star Michelin restaurant in Nottingham, said uncertainty about the cost of living was the biggest issue facing the sector. The government said addressing business costs was as important as tackling the cost of living.
Prime Minister Andy Burnham and chancellor John Healey have announced early help for pubs
Bains said he had worked with the owner of No.8 Deli, John Hyman, for more than 20 years. He said the pop-up was intended to support local businesses and do something different from the restaurant’s usual breakfast offering.
“We do a breakfast offering at the restaurant, with the rooms, and we thought it would be brilliant to do something different.
“So we thought 'a pop-up take over', we thought 'let's support local'.”
His team created deli-style versions of some of his breakfast menu, including Earl Grey prunes and crumpets with smoked trout. The move was, in part, prompted by the difficulty of the trading environment for hospitality.
Earlier this month, new Prime Minister Andy Burnham announced a 20% cut in business rates for pubs, social clubs and music venues in England, telling them
“the cavalry is coming”. Some hospitality firms welcomed the move, but others in the industry, such as hotels and restaurants, questioned why the 20% cut to business rates would not extend to them.
Bains called for more action from the government to slash VAT rates, saying the tax was especially damaging for hospitality.
“The VAT is the problem in the UK, especially in our industry,” Bains said. “Twenty percent is probably one of the highest in the world.
“If we can get that reduced that's going to help.
“We've been running the business for 20 years and it's hard, it's the hardest it has ever been.
“But we are long-term businessmen and you have to take all the hits.
“Ultimately, it's up to the government, whatever we say doesn't matter.”
He said high living costs had made people more cautious, with the restaurant's previous three-month waiting list now down to two weeks.
“People are booking closer to the time they want to eat.
“They are cautious because they don't know what the future holds, and I get it because we are all in the same boat,” he said.
'Thriving community'
Hyman said cutting overheads would boost businesses which are the lifeblood of the high street. He said he did not see the other shops around him as competition, and wanted a thriving independent community of shops.
“I don't see the other shops around here as competition.
“We want a thriving independent community of shops. It's great to work with other people who have a similar mindset,” he said.
Value added tax, or VAT, is the tax people have to pay when buying goods or services. The standard rate of VAT in the UK is 20%.
Earlier this year, four other top UK chefs and restaurant owners urged the government to cut VAT for restaurants and pubs. The rate, which applies to UK hospitality businesses, is the second highest in Europe behind Denmark, according to UK Hospitality.
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