Your favourite restaurants can barely scrape by - this is what we need from Rachel Reeves

The industry employs a wide pool of talent, from kitchen porters, commis chefs and waiters to chefs and sommeliers who have gone on to redefine the way we eat and drink as a nation. We should be proud of our hospitality industry and support it as much as possible.

In the current economic climate, where inflation and fuel prices mean less disposable income, the Government must work not only to keep restaurants open but also to ensure sustainable businesses with a long-term future.

Business rates desperately need reform. Currently, the existing rates mean hospitality venues are going out of business at an alarming pace, and the trend is unlikely to slow down unless definitive action is taken as a priority.

A U-turn on National Insurance is vital. The increase in minimum wage doesn’t equate to more jobs, and many employers can’t afford it.

A reduction in VAT or a change in its calculation would also be highly beneficial. During the pandemic, VAT relief changed the whole dynamic of how hospitality businesses operated.

We were able to turn a profit, which meant that we were in a better headspace to make positive decisions for the restaurant and our team - one of which was to decrease the number of covers at the restaurant and refine our offering.

With current VAT rates, margins are incredibly tight, and in some months, we are just breaking even. This leaves no room for unexpected issues, such as broken air conditioning or high supplier costs, and it also limits what we can do creatively with the restaurant.

The current 20 per cent VAT means that 20 per cent of the guests’ bill doesn’t go into our pockets – plus we already have VAT included in our own bills. A blanket 20 per cent rate needs to be addressed with more nuance. Even different percentages for different ingredients would be an enormous help.

France, for example, has different rates for alcohol, fresh food, and packaged food. In French restaurants, the rate is 10 per cent, which is half of ours. That is an enormous difference which plays a role in a country’s dining culture.

The costs of running a restaurant are increasing. For example, even basics like the butter we cook with - and as a restaurant based in French gastronomy, we use a fair amount of butter - have nearly doubled in price.

When we opened in 2018, butter cost £4.8 per kg; now it is £9.

Proteins keep going up as well. In 2018, turbot was between £24/34 per kg, and now it is £30/40; saddle or rack of lamb was £15 per kg and now costs just under £20. These price shifts make a real impact on the business.

Hospitality was an integral part of my upbringing and is an industry I truly love. Aside from running my own restaurant, Caractère, I am involved with the Roux Scholarship, which provides a platform for a new generation of talent. This talent will not be able to survive in the current climate - just recently, we heard about the closure of Crocadon, a Michelin-starred project from a very talented Roux Scholar, Dan Cox.

Ultimately, any proactive change and relief incentives that take into account the needs and concerns of the hospitality industry – be they those of business owners or people working the floor – would not only be beneficial but a gesture of goodwill from the Government that will provide reassurance at a difficult time.

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Emily Roux is a third-generation chef continuing the legacy of one of the world’s most celebrated culinary families, and the chef-owner of Caractère, a Michelin-starred restaurant in Notting Hill.

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