More than 800 hospitality businesses and owners have signed a letter to the prime minister asking about his pledge to introduce a lower rate of VAT for hospitality.
It follows up on a pledge Andy Burnham made in February, when he was still mayor of Greater Manchester, to bring hospitality VAT in line with that of other European countries.
“It’s time for a fairer tax burden for hospitality,” says the letter. “Without action, closures will only continue to accelerate, jobs will continue to be lost, and opportunities for young people reduced.
“More than 370,000 people have signed the #VATsTheProblem petition, calling for a 10% rate of VAT for hospitality, bringing the UK in line with the European average.”
Businesses signing the letter included Fuller’s, Greene King, and Mitchells & Butlers. Among individual signatories were Tom Kerridge, Paul Ainsworth, and Angela Hartnett.
Meanwhile, UKHospitality has suggested that a condition of the introduction of a tourism tax should be a reduction in hospitality VAT to 10%.
“The Government claims this [tourim] tax is normal,” said Allen Simpson, chief executive of UKHospitality. “It’s not. There are scant examples of a destination with our 20% level of VAT and a holiday tax, for a reason. If it wants to use that argument, it should practice what it preaches and lower hospitality VAT to 10%, in line with Europe.”
He added: “It’s now more important than ever that the Budget reduces hospitality’s costs, given the holiday tax is set to increase them once again. Tinkering around the edges is not enough. There has to be a substantial reduction in hospitality’s tax burden next month. Cut VAT, fix business rates, and reduce NICs.”
