Scottish hospitality urges first Minister to back VAT reduction

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Over 100 Businesses Write Open Letter to John Swinney

More than 100 leading chefs and hospitality businesses across Scotland have written to First Minister John Swinney, asking him to support the #VATsTheProblem campaign. The group, in an open letter, urged Mr Swinney to join calls for the UK Government to reduce hospitality VAT to 10%, aligning it with the European average.

Notable names from Scottish hospitality who have backed the campaign include Michelin-starred chef Tom Kitchin, Great British Menu winner Lorna McNee, and Edinburgh’s Balmoral Hotel.

Businesses important to Scotland’s visitor destination reputation, such as Cameron House Resort on Loch Lomond, Macdonald Hotels, Andy Murray-owned Cromlix Hotel in Dunblane, The Torridon in the Highlands, Auchrannie Resort in Arran, and Kingsmills Hotel in Inverness, are also represented among the signatories.

Pub and restaurant groups operating across Scotland, including The DRG, Glendola Leisure, Greene King, Mitchells and Butlers, Punch Pubs & Co, and Signature Pubs, have also lent their support.

The letter stated that the Scottish hospitality, nightlife, leisure, and tourism sector is “under enormous pressure” due to a tax burden that is “among the highest in the economy.” This financial strain is causing “business closures, lost jobs and harm to our communities.” The campaign has garnered significant public support, with more than 380,000 signatures from individuals.

Signatories believe that “reducing the rate of VAT for hospitality, bringing it in line with the rest of Europe, is an important step in enabling hospitality businesses to grow the economy, create jobs and support our communities across Scotland.”

They further asserted that “10% VAT is fair for hospitality.” Ahead of the UK Budget, the letter requests the Scottish Government formally support the calls for 10% hospitality VAT and write to the Chancellor of the Exchequer and the Treasury urging them to act. The letter also noted that the Scottish Government has previously supported calls for a reduced rate of VAT.

The #VATsTheProblem campaign is a united sector-wide initiative calling for hospitality VAT to be reduced from 20% to 10%. Chef Tom Kerridge is spearheading the movement, which is supported by hospitality trade bodies and organisations, including UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping, and CODE Hospitality.