Hospitality has so much potential - to create jobs, to drive high street regeneration and economic growth. But it is held back by tax - the most highly taxed sector of the economy
Now the sector is united that #VATsTheProblem. A new sector-wide campaign, spearheaded by Tom Kerridge, is calling for hospitality VAT to be reduced from 20% to 10% - the single biggest lever the Government can pull to unleash potential. So let’s make the Sunmer’s VAT cut the start. Sign the petition today 👇
https://t.co/IW5iwiWaFk
Tom Kerridge is leading a campaign to slash VAT to 10%
Celebrity chef and pub operator Tom Kerridge is leading a hospitality industry campaign calling for VAT to be reduced to 10%.
Read more here:
https://t.co/fCL2MgLyYf
#VatCut#TomKerridge
.@hilarybennmp on @skynews when I asked about Streeting preparing to resign:
"I think we should rally behind the Prime Minister. We should let him get on with doing his job because he is a serious politician and these are very, very serious times
"I think we should back the Prime Minister and I will remain of that view. And I would say to my colleagues, think about what really matters for the future of the country. And we're less than two years in, less than 2 years in; we've made a start, we've got a lot more to do. Let's get on with the task."
Cross party request; this is not about politics this is about the survival of a industry - we are asking you to work together @UKLabour@Conservatives@LibDems@reformparty_uk to implement the below immediately.
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We propose the implementation of our fully costed emergency VAT cut for hospitality to 13% for six months, at a cost of £3.5bn, funded using the fiscal headroom created last month.
At the end of the six month period, we propose a cross party parliamentary review to properly assess the economic impact of the that #VatCut in line with Europe.
If, as we believe, the cut reduces inflation, lowers the cost of living, protects hospitality businesses and keeps people in work - the reduction should be made permanent for the hospitality sector.
Longer term, this can be funded through a balanced combination of fiscal headroom and a fair online sales tax, ensuring the high street and hospitality are no longer carrying a disproportionate tax burden.
It is targeted, fully costed and economically sensible.
#Hosptiality #CutVat #HospitalityVoices #TaxedOut
Supported by
@ntiaofficial@UKHofficial@BIIandBIIAB@wonky_table@CAMRA_Official@scothospgroup@HospoVoices@CampaignforPubs
You can see the workings here;
https://t.co/qw1KpW3oES
Research endorsed by
@IoH_Online
United we win, divided we fall.
The call to #CutVat for #Hospitality is not new. We have been here before. What is different now is that the industry is running out of road and we have changed perception and have support on our side and the ears of many of the major parties. @reformparty_uk have taken a position, The @LibDems have called for a emergency #VatCut, the @Conservatives are forming a position and yesterday @UKLabour MP's finally started to break ranks on the issue.
For years, Hospitality has carried a tax burden that no other European nation sees as sensible and for years we've not been listened to.
While our competitors operate with reduced VAT rates that recognise food and drink as part of everyday life, we continue to treat it as a luxury.
The result is obvious. Thinner margins, less investment, fewer jobs, weaker town centres. All the while as politicians have ignored us, or a the least paid lip service to us.
A VAT cut is not about special treatment. It is about fairness and realism.
A VAT cut in line with Europe would not magically fix everything. It would however give businesses a fighting chance. It would allow operators to reinvest in staff, training, buildings, menus and service. It would encourage people back into pubs, restaurants and hotels rather than keeping spend at home. It would support tourism, supply chains and local producers. Most importantly, it would help future proof an industry that employs millions.
The argument that the Treasury cannot afford it misses the point. The cost of inaction is already visible. Closures are rising. Investment is stalling. Talented people are leaving the trade. Every shuttered pub and restaurant is lost tax revenue, lost jobs and lost community value. A fair VAT rate grows the tax base rather than shrinking it.
But none of this will happen unless the industry speaks with one direction, one ask, one focus.
Hospitality is of course fragmented. Pubs argue with restaurants. Independents feel distant from groups. Hotels sit in a different lane. PubCo's and Brewers have a different priority to tenants. That division weakens us. Government listens when an industry is united, organised and consistent. It ignores noise when messages are diluted by internal disagreement.
This is the moment to stand together. Big operators, small operators, urban, rural, food led, drink led, accommodation led. The detail of our models may differ, but the fundamentals are the same. Rising costs, heavy taxation and an uneven playing field.
Unity does not mean uniformity. It means agreement on the one thing that matters most right now. A VAT rate that reflects reality and gives hospitality a future. For the first time in a long time our trade bodies and Industry leaders are united.
If we fail to keep united, nothing changes. If we do keep united, this becomes one of the most powerful economic arguments on the table.
This is not a nice to have. It is essential. Our Voices and pressure are now whats makes this a reality.
A Vat Cut in line with Europe. Nothing else will do.
#HospitalityVoices #TaxedOut #Pubs #Restaurants #Hotels #Nightlife #Clubs #Events #Cafes
@wonky_table@UKHofficial@ntiaofficial@BIIandBIIAB@IoH_Online@CampaignforPubs@IndiePubAllies@tourismsvoice@scothospgroup@Craft_Guild@thechefsforum@NFFF_UK@HospitalityTday@CAMRA_Official
See more here a https://t.co/qw1KpW3oES and our fully costed independent research proposal for a VAT cut in line with Europe to 13%.
The Hospitality Industry needs a VAT cut and a much greater Business Rate discount.
As April looms, this need is becoming more urgent. 🚨🧑🍳☕️🍻🏨
@UKHofficial
An emergency cut in VAT for Hospitality and Tourism, to a rate already seen around Europe, will cool inflation in many areas.
It will save businesses and jobs.
It will energise a sector that normally leads the economy out of a slump.
NO BRAINER @RachelReevesMP , ENGAGE YOURS
Michelin-starred chef and pub owner Tommy Banks tells Sky's @DarrenMcCaffrey that the "biggest lever the government could pull" to help the hospitality industry would be to lower VAT rates for businesses in the sector.
🔗 https://t.co/6ktEU96esf
📺 Sky 501
So we are looking into the detail on rates relief and hope to see at the very least a 13p multiple applied to rates and to all Hospitality…. however If the government is serious about growth, jobs and easing the pressure on the cost of living, then hospitality is the place to start. And the lever is obvious. VAT. #CutVat #Hospitality
Hospitality is not a side issue. It is one of the UK’s biggest private employers, it underpins our high streets and town centres and it is one of the quickest ways to stimulate real economic activity.
When hospitality is working, people are in jobs, spending money and supporting local economies. When it is not, the damage is immediate.
Right now, the sector is being hit from all sides. Business rates have risen sharply (subject to a potential Government u-turn. Employer National Insurance has gone up. Wage costs are up again. Energy remains unpredictable. All of this has landed at once, at a time when customers are already watching every pound.
The outcome is obvious. Hours are cut. Teams are reduced. Prices rise. Venues close. That feeds straight through into higher unemployment, weaker high streets and lower tax receipts. Nobody wins.
VAT is the single most effective short-term tool the government has. It is fast, it is targeted and it works.
A reduction in hospitality VAT to 13%, in line with the European average, would give businesses immediate breathing space. It would help keep prices down or, in many cases, stop further rises altogether. It would protect jobs, keep doors open and drive footfall back into our pubs, restaurants, cafés and bars.
This is not a giveaway. The idea that a VAT cut simply costs the Treasury a fixed headline figure ignores how the economy actually works. Lower VAT drives demand. Demand supports jobs. Jobs generate income tax and National Insurance. Businesses that survive and trade profitably pay corporation tax. Closed businesses pay nothing.
We have seen this before. When VAT has been reduced for hospitality in the past, the sector recovered faster than expected, as did the economy. Employment stabilised. Tax receipts followed. Hospitality does not sit on money. It recycles it immediately through wages, suppliers, landlords and local communities.
The alternative is what we are seeing now. Higher VAT combined with higher fixed costs forces businesses to pull back. Shorter opening hours. Fewer staff. Less investment. More closures. Empty units and unemployed workers generate no tax and no growth.
This is why hospitality matters. It is an engine of growth. It employs people quickly. It gives young people a start. It drives tourism and supports retail, transport and events. When hospitality struggles, the wider economy feels it.
A targeted six month VAT reduction, with a formal review built in before it ends, would allow the government to look at the evidence properly. If it delivers lower inflation, higher employment and stronger overall tax receipts, then the case for extending it becomes clear.
Raising taxes and then offering limited relief is not reform. It is just moving the problem around.
If Labour wants growth, functioning high streets and people in work, then it needs to use the tools that actually deliver.
Hospitality is ready to do its part. But it needs the right conditions to survive and grow.
The lever is VAT.
#CuttheVAT in line with Europe to 13%
Footnote: The proposed VAT reduction applies to food and beverage sales only, whether operated independently or within hotels and
attractions. It excludes wider ancillary revenues, including but not limited to VAT on accommodation, tickets or admission
@ChefTomKerridge on @BBCNewsnight talking about the reality for our nations pubs & the need for urgent action to reduce the unfair tax burden that is stifling growth, jobs & leading to unnecessary pub business failure. Every MP needs to get behind their locals. @BIIandBIIAB