Coalition of chefs, pubs, restaurants and hotels seeks VAT reduction.
An unprecedented coalition of more than 800 hospitality businesses has written an open letter to the Prime Minister, urging him to set out plans for a lower rate of VAT for the sector and to deliver on a pledge he made earlier this year. The businesses have united as part of the #VATsTheProblem campaign, calling for a 10% VAT rate to bring the UK in line with the European average.
Signatories to the letter represent the entirety of hospitality, from household names and celebrity chefs to single-site, independent pubs, bars, restaurants, cafes, hotels, tourism, and leisure businesses. Notable names include celebrity chefs such as Andi Oliver, Angela Hartnett, Clare Smyth, Heston Blumenthal, Jason Atherton, Nathan Outlaw, Paul Ainsworth, and Tom Kerridge. Pubs, bars, and brewers include Fuller’s, Greene King, Loungers, Marston’s, Mitchells & Butlers, Robinsons Brewery, St Austell Brewery, Stonegate Group, Timothy Taylor’s, and Wetherspoon’s. Restaurant groups like Big Table Group, Bill’s Restaurants, Franco Manca, Pizza Express, Wagamama, Wahaca, and Wasabi have signed, alongside accommodation providers such as Best Western Hotels, Center Parcs, Haven, Marriott International, Parkdean Resorts, and PPHE Hotel Group. The vast majority of the signatories are small- and medium-sized businesses operating at the heart of their communities.
The open letter follows comments made by Andy Burnham, then Mayor of Greater Manchester, in February, where he publicly supported a hospitality VAT rate in line with Europe. It also builds on the Prime Minister’s announcement to cut business rates by 20% for pubs, clubs, and live music venues in his first week in office, with the campaign urging the Government to build on this positivity.
You Might Also Like:
The letter stated that a fairer tax burden for hospitality is needed, warning that “without action, closures will only continue to accelerate, jobs will continue to be lost and opportunities for young people reduced.” It highlighted that more than 370,000 people have signed the #VATsTheProblem petition calling for a 10% rate of VAT for hospitality. The letter concluded by trusting they could count on the Prime Minister’s support, referencing his February comments that he would “argue for a VAT rate more consistent with what you find in Europe because of the social value that your businesses bring to places and towns”.
Tom Kerridge, said: “It’s clear that the Prime Minister understands the importance of hospitality, and I was really encouraged to hear him make the case earlier this year for a lower rate of VAT for our sector. The reality is that 20% VAT is holding hospitality back. Hospitality is different from many other businesses because so much of what we spend our money on is our teams. You can reclaim VAT on a product, but you can’t reclaim VAT on a person. That makes a 20% rate particularly tough for a sector where labour is one of our biggest costs.”
Mr. Kerridge added that businesses are currently dealing with rising wages, energy bills, food costs, and business rates, leading to closures every week. He concluded: “That’s why hospitality businesses across the country have come together with one simple ask of the Prime Minister: deliver on your pledge and bring hospitality VAT down to 10%, in line with our European neighbours. We don’t need another promise. We need action.”
