In Brief: More than 800 hospitality businesses have signed an open letter urging the Prime Minister to set out plans for a lower VAT rate for hospitality.
-
UK Hospitality Businesses Urge Lower VAT Rate – Image Credit Unsplash+
More than 800 hospitality businesses have joined the #VATsTheProblem campaign and signed an open letter calling on the Prime Minister to introduce a lower VAT rate for hospitality.
The signatories include businesses across pubs, bars, restaurants, cafes, hotels, tourism and leisure. Most are small- and medium-sized businesses operating venues in their communities.
Named signatories include celebrity chefs Andi Oliver, Angela Hartnett, Clare Smyth, Heston Blumenthal, Jason Atherton, Nathan Outlaw, Paul Ainsworth and Tom Kerridge.
Pub, bar and brewing signatories include Fuller’s, Greene King, Loungers, Marston’s, Mitchells & Butlers, Punch Pubs & Co, Robinsons Brewery, St Austell Brewery, Stonegate Group, Timothy Taylor’s and Wetherspoon’s. Restaurant signatories include Big Table Group, Bill’s Restaurants, Franco Manca, Pizza Express, Wagamama, Wahaca and Wasabi.
Accommodation businesses listed as signatories include Best Western Hotels, Center Parcs, Haven, Marriott International, Parkdean Resorts and PPHE Hotel Group.
The letter calls for a 10% VAT rate for hospitality, which it said would bring the U.K. in line with the European average. More than 370,000 people have signed the #VATsTheProblem petition supporting the rate.
In February, Andy Burnham, then mayor of Greater Manchester, said he would argue for a hospitality VAT rate in line with Europe. The letter also referred to the Prime Minister’s announcement to cut business rates by 20% for pubs, clubs and live music venues in his first week in office.
The signatories said that without action, closures would continue to accelerate, jobs would be lost and opportunities for young people would be reduced. They said a lower VAT rate could turn closures into openings and lost jobs into new jobs.
Kerridge said hospitality businesses faced a 20% VAT rate while dealing with rising wages, energy bills, food costs and business rates. He said labor was among the sector’s highest costs and that VAT can be reclaimed on products but not on employees.
