Hospitality Crisis: 800+ Businesses Urge PM Burnham to Halve VAT!

The UK's hospitality sector is sounding the alarm, with more than 800 businesses united in a plea to Prime Minister Andy Burnham to cut VAT from 20% to a more sustainable 10%. This urgent call comes from the "VAT's The Problem" campaign, which argues that the current tax rate is stifling growth and leading to widespread closures and job losses across the country. Industry giants and beloved local spots alike have signed a powerful letter to Mr.

Burnham, reminding him of his earlier public support for a lower VAT rate for hospitality. Among the notable signatories are celebrity chefs Heston Blumenthal and Tom Kerridge, along with popular restaurant chains like Bill's, Franco Manca, Pizza Express, and Wagamama.

Pub groups such as Fuller's, Greene King, and Wetherspoon's, and even resorts like Center Parcs and Marriott International, have joined the chorus, emphasizing the collective struggle faced by the sector.

Tom Kerridge, a prominent voice in the campaign, highlighted the unique challenges hospitality businesses face.

He explained that unlike other sectors, hospitality cannot reclaim VAT on its largest cost, its teams.

"20% VAT is holding hospitality back," Kerridge stated, emphasizing that labour costs are a significant burden, especially amidst rising wages, energy bills, and food costs. This financial squeeze is pushing many businesses to the brink, with closures becoming a weekly occurrence.

The campaign points out that a 10% VAT rate would bring the UK in line with the European average, creating a fairer tax burden for an industry that is crucial for local economies and community vibrancy. The letter passionately argues that a VAT reduction could transform closures into new openings, reverse job losses into new employment opportunities, and revitalize struggling high streets.

With over 370,000 people already signing the #VATsTheProblem petition, the pressure is mounting on the Prime Minister. The industry hopes that Mr.

Burnham, who has made reviving Britain's high streets a key focus of his tenure, will act decisively.

They are urging him to combine VAT reform with his existing plans to adjust business rates, creating a comprehensive strategy to support and grow the hospitality sector. The message is clear: without immediate action, the heart of Britain's communities, its pubs, restaurants, and hotels, will continue to suffer.

#VATsTheProblem #HospitalityCrisis #UKBusiness