News

Chef and publican Tom Kerridge is spearheading a major new campaign calling on the Government to reduce VAT for hospitality businesses from 20% to 10%.

The #VATsTheProblem campaign has launched with backing from leading industry organisations including UKHospitality, the British Beer & Pub Association (BBPA), the British Institute of Innkeeping (BII) and CODE Hospitality, as operators across the sector continue to face mounting cost pressures.

The campaign argues that the UK's hospitality VAT rate is among the highest in Europe and is putting significant strain on pubs, restaurants, cafés, hotels, bars and other hospitality businesses. Supporters are calling for a reduction to 10%, bringing the UK more closely into line with countries such as France, Italy and Spain.

As part of the initiative, hospitality businesses are being encouraged to sign and share a national petition calling for VAT reform. The campaign aims to secure widespread support from hospitality operators, employees and consumers ahead of a major public push beginning on 1 July.

Kerridge said: "Hospitality is one of the UK's most important industries, supporting communities, creating jobs and driving economic growth, yet businesses continue to face immense challenges.

"Many European countries recognise the value of hospitality and support the sector through lower VAT rates. We believe the UK should do the same. A reduction to 10% would give businesses the opportunity to invest, protect jobs and build a stronger future."

The campaign comes at a time when many hospitality operators are grappling with rising labour, energy and operating costs, alongside ongoing pressure on consumer spending.

Campaign organisers say a lower VAT rate would help businesses invest in staff, improve customer experiences, support local high streets and strengthen the long-term sustainability of the sector.

An open letter from Kerridge is urging hospitality businesses to unite behind the campaign and encourage employees, customers, friends and family members to sign the petition.

He added: "This is a nationwide campaign and now is the time for hospitality to come together. By making our voices heard, we can demonstrate the importance of our sector and the role it plays in communities across the country."

Businesses can access campaign resources, including digital assets, posters and promotional materials, to help spread awareness and encourage participation.

Further information and details on how to support the campaign can be found at www.vatstheproblem.co.uk.