UKHospitality has stepped up its campaign for the Government to reduce VAT for the hospitality sector to 10%, arguing that businesses across Britain’s high streets need urgent support to remain competitive and continue investing in jobs and communities.
The trade body took its #VATsTheProblem campaign to Manchester, where chief executive Allen Simpson joined chef and hospitality entrepreneur Tom Kerridge and sector campaigner Sacha Lord to make the case for a lower rate.
UKHospitality is calling for VAT to be reduced to 10%, pointing to the tax treatment of hospitality businesses elsewhere in Europe and arguing that the current burden is holding back a sector that plays a central role in local economies.
In a statement following the Manchester visit, UKHospitality said:
“Hospitality is so important in cities and towns across the UK, where it’s inherently a part of the culture and identity of the place.”
The organisation said its team spent two days meeting journalists and hospitality operators in Manchester to discuss the pressures businesses are facing and build support for the campaign.
It added:
“It was great to talk with journalists and operators across Manchester about the campaign and why hospitality needs a 10% rate of VAT.”
The campaign comes amid continued concern within the sector about the cumulative cost pressures facing pubs, restaurants, hotels and other hospitality businesses.
Supporters of a VAT reduction argue that lowering the rate would give businesses greater capacity to invest, protect jobs and keep prices affordable for customers, while helping independent operators remain viable.
The issue is particularly significant for smaller hospitality businesses, which often operate on tight margins while facing substantial staffing, property, energy and supply costs.
UKHospitality is encouraging businesses, workers and members of the public to support its petition calling for the VAT reduction.
The campaign also adds to a wider debate about how the Government can support Britain’s high streets and hospitality industry while encouraging economic growth.
With hospitality businesses providing employment and acting as anchors for town and city centres across the country, campaigners argue that reducing VAT could provide targeted support to one of the sectors most exposed to rising operating costs.
The Manchester campaign is expected to form part of a broader push by the industry to persuade ministers to consider a 10% hospitality VAT rate as the Government develops its economic and fiscal plans.
