UKHospitality Cymru has told the Welsh government that hospitality needs practical help to reduce its tax burden, which is one of the highest of any sector in the UK.
David Chapman, executive director for UKHospitality Cymru, made the case to Adam Price MS, the cabinet minister responsible for economic strategy and hospitality, that lowering business rates for the sector would be a simple and practical solution to reduce costs.
He also urged the Welsh government to support the #VATsTheProblem campaign, which is calling for 10% hospitality VAT, and which has amassed more than 350,000 supporters.
Chapman said: “It was great to meet with the minister, who I felt took the concerns of the sector seriously and understood the need to reduce hospitality’s tax burden. I’m hopeful this will result in positive action from the Welsh government.
“Welsh hospitality remains taxed out and every day that passes sees local community venues struggle with higher and higher costs. Inflated and unjust business rates are the hallmark of a tax system that continues to punish bricks and mortar hospitality businesses.
“Lowering hospitality’s business rates payments to the same level as high street retail is a common-sense solution that would alleviate cost pressures, boost our ability to employ young people and support high street regeneration.
“Longer-term, wholesale business rates reform is still required. I hope short-term measures to reduce our tax burden will be accompanied by a commitment to reform business rates and work more closely with the hospitality sector.”
