Hospitality operators in Burnham VAT cut plea

More than 800 hospitality businesses have written to Prime Minister Andy Burnham urging VAT action.

The VAT’s The Problem campaign has called for the hospitality VAT rate to be reduced from 20 per cent to ten per cent.

Operators have signed a letter urging Mr Burnham to deliver on his public support in February for a lower rate of VAT for hospitality.

Reviving Britain’s high streets has been a key focus for the Prime Minister since he took over in No 10, promising to give councils new powers to block vape and betting shops and pledging to cut business rates for pubs.

Notable names to sign the letter include celebrity chefs Heston Blumenthal and Tom Kerridge, and restaurants Bill’s, Franco Manca, Pizza Express and Wagamama.

Pubs, bars and brewers among the signatories include Fuller’s, Greene King, Robinsons Brewery and Wetherspoon’s, as well as resorts such as Center Parcs, Haven and Marriott International.

In the letter, the signatories said: “It’s time for a fairer tax burden for hospitality.

“Without action, closures will only continue to accelerate, jobs will continue to be lost and opportunities for young people reduced.

“More than 370,000 people have signed the #VATsTheProblem petition calling for a ten per cent rate of VAT for hospitality, bringing the UK in line with the European average.

“A lower rate of VAT for hospitality can turn closures into openings, lost jobs into new jobs and boarded up high streets into thriving centres of community.

“Alongside your policy to reform business rates for the high street, we urge you to bring forward your plans to deliver a lower rate of VAT for hospitality.”

The campaign is supported by hospitality trade bodies and organisations including UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Code Hospitality.

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