More than 800 hospitality businesses across the United Kingdom have collectively urged Prime Minister Andy Burnham to reduce the value-added tax (VAT) for the sector from 20% to 10%, aligning the UK with the European average. The request was made through an open letter as part of the #VATsTheProblem campaign, which highlights the financial pressures facing pubs, restaurants, hotels, and leisure venues nationwide.
The group comprises a diverse range of establishments, including well-known pubs, bars and brewers such as Fuller’s, Greene King, and JD Wetherspoon; restaurant chains like Franco Manca, Pizza Express, and Wagamama; as well as hotel operators including Best Western and Marriott International. Many of the signatories are small- and medium-sized businesses, such as independent single-site pubs and hotels. Leisure groups Center Parcs and Parkdean Resorts also back the call.
Numerous celebrity chefs have endorsed the appeal, including Angela Hartnett, Heston Blumenthal, Tom Kerridge, Andi Oliver, Clare Smyth, Jason Atherton, and Nathan Outlaw. Kerridge emphasized the impact of VAT on labor costs, noting that, unlike products, VAT cannot be reclaimed on employee wages, making the 20% rate especially burdensome for a sector heavily dependent on staffing.
The initiative builds on a previous pledge from Burnham, who as Greater Manchester mayor earlier this year committed to campaigning for a hospitality VAT rate comparable to those in Europe, citing the sector’s vital social and economic contributions to communities. Over 370,000 individuals have supported the cause through a petition.
The campaign follows recent government measures introduced in the prime minister’s first week in office, which included a 20% reduction in business rates for pubs, clubs, and live music venues backed by a £100 million support package. Nonetheless, industry representatives argue that further fiscal relief is needed to prevent ongoing closures, job losses, and reduced opportunities, particularly for young people entering the workforce.
Supporters of the VAT cut argue that lowering the rate would stimulate business growth, helping to transform closures into openings and revitalize local high streets. They call a fairer tax burden crucial to ensuring the long-term viability of hospitality venues across the UK. The government has yet to publicly respond to the latest appeal.
