Speaking to The Observer following the government’s decision to introduce a 15% rates reduction for qualifying pubs and live music venues from 2026 to 2027, Kerridge said he is “positive” about improved communication with ministers but “downbeat” about the wider understanding of hospitality pressures in Whitehall.
“I am incredibly negative and downbeat, and also slightly perplexed, about the fact that there is still such a lack of understanding of the hospitality industry,” he said.
The comments follow the chef’s recent meeting with business secretary Peter Kyle to discuss sector pressures ahead of last week’s support package.
“Most businesses now are operating at about 110% costs, which means they have to make a 10% return on revenue just to break even. So they are all being priced out of business,” he warned.
‘Losing money’
He pointed to one of his own sites, the Butcher’s Tap in Marlow, where business rates have risen from £50,000 to £125,000. “All of sudden, you are losing money,” he added.
Kerridge also questioned the logic behind applying different methodologies to pubs, restaurants and hotels.
“They genuinely don’t have an understanding of how hospitality works. And I can’t quite get why the government sees such a difference between pubs and restaurants and hotels. That just shows you that the business rates system is not fit for purpose.”
Decline in quality
Beyond the immediate rates impact, Kerridge said escalating costs could accelerate a decline in skills and quality across the sector.
“Expenses escalate. It would mean a loss of skills, and the seeking out of cheaper, processed food products. Or, worse still, all pub owners will just throw in the towel. That will really suck the life out of high streets.”
Although Kerridge has become an increasingly prominent industry advocate in recent years, he said a move into politics is unlikely. “I have thought about it, but I’m not interested in the small stuff,” he said. “There is no comparison with being a cook, where I can just follow my own creative passion.”
He did, however, say he would consider an advisory role if government were to establish a dedicated hospitality ministry.
