The VATs The Problem campaign has reached a new milestone, with 300,000 people having signed the petition supporting a new rate of 10% VAT for hospitality businesses.
Recent figures from an industry tracker survey, conducted by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping, and Hospitality Ulster, showed the fragility of the sector. More than 70% of operators cited VAT, food and drink inflation, and increased staffing costs from significant rises in national minimum wage and employer National Insurance contributions as the top challenges facing hospitality businesses across the UK.
From 1st July, hospitality venues have been sharing the VATs The Problem campaign with their teams, customers, and suppliers, urging them to get behind the call for the most impactful lever the government can pull — a cut to VAT for hospitality to 10%, in line with most European countries, including Ireland, where VAT is now 9%.
“The prime minister sent a clear message last week by cutting business rates for pubs and live music venues by 20%,” said the trade bodies in a joint statement. “In doing so, he recognised that hospitality is vital to our towns, high streets, and communities in every postcode of the UK.
“His support for our sector, and his promise that ‘the cavalry are coming’ has given thousands of operators a much-needed shot in the arm, both in real terms and also in the confidence that he understands the very real danger, as he put it, ‘that too many high streets across Britain are in decline’.
“Our local pubs, restaurants, hotels, cafés, and other hospitality venues are integral to our communities, creating millions of flexible, accessible jobs, and they have the ability to drive the growth that is urgently needed.
“The high levels of support for the campaign demonstrates the strength of feeling for the support hospitality businesses need to ensure they can endure as these keystones of communities across the UK. The government needs to act swiftly, reducing the unsustainable tax burden on the sector, before it is too late.”
Chef Tom Kerridge was a prime mover behind the VAT’s The Problem campaign. He said: “It’s absolutely amazing that the campaign has reached 300,000 signatures! It’s creating so much noise and energy — I’m so proud of how the whole hospitality industry has come together for this, and I’m hopeful that the government is finally paying attention to us.”
