Connor Naismith, Member of Parliament for Crewe & Nantwich, has written to the Chancellor requesting for a reduction of VAT levels charged against hospitality businesses in the UK.
Currently at 20%, standard VAT levels for the hospitality industry in the UK are the second highest in Europe. Where smaller businesses are unable to absorb these charges themselves, they are forced to pass them onto the consumer, creating an uneven playing field with larger chains.
This additional strain, on top of rising costs and inflationary pressures due to external factors, are squeezing the independent hospitality industry.
Connor Naismith wrote to the Treasury calling for a review of VAT levels in November 2025. He also met with UK action group Hospitality Together in support of their campaign to cap VAT at 10% in April 2026.
Earlier this month, Mr Naismith was approached by the owner of St Martha Restaurant in Nantwich, who stressed that local businesses could not afford to wait any longer for Government action.
During that meeting, Mr Naismith was presented with a letter signed by 56 businesses across the constituency, calling for an immediate reduction in VAT to 10%.
Connor Naismith has written directly to the Chancellor to present her with these findings, and to request a meeting to find a way forward which gives the local hospitality sector the support needed.
Connor Naismith, Labour MP for Crewe & Nantwich, said:
“Firstly, I want to thank Kelly and the other business owners who have contacted me about this issue. Their open and honest engagement has enabled me to make the strongest possible case to the Treasury on the need for VAT reform.
“Hospitality businesses are absolutely vital to building a sense of community. We can’t afford to lose independents because of unfair VAT rates that are completely out of touch with our European counterparts.
“This Labour Government has taken steps to invest in our towns through its Pride in Place Programme and promotion of High Street Rental Auctions. If we don’t act now, local hospitality businesses may not be around to benefit from these changes.”
Kelly Woodnutt, owner of St Martha Restaurant, said:
“Hospitality is in a national state of crisis and we need urgent action to provide some relief. I would like to thank Connor and his team for meeting with me to discuss our concerns, and supporting our campaign to lower VAT, which has always been weighted against the industry.
“Connor recognises the importance of the sector and understands the impact on employment, economy & communities across the UK. I would encourage other hospitality operators to rally together and write to their MPs. We need action, and we need it now.”
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Notes to the Editor The letter from Labour MPs to the Treasury calling for VAT reforms in hospitality can be viewed here . More information on Mr Naismith’s meeting with Hospitality Together can be viewed here . The letter from Connor Naismith to the Treasury calling for a reduction in VAT for hospitality businesses can be viewed here .
