More than 800 hospitality businesses, led by prominent chefs Tom Kerridge and Heston Blumenthal, have united to urge the UK government to reduce the value-added tax (VAT) rate on hospitality from the current level to 10%. The group, which includes celebrity chefs Andi Oliver and Angela Hartnett, brewers Fuller’s and Greene King, pub chain JD Wetherspoon, and restaurant groups Franco Manca, Pizza Express, and Wagamama, has launched the #VATsTheProblem campaign, calling on Prime Minister Andy Burnham to enact the cut.

The coalition’s call comes ahead of Chancellor John Healey’s first Budget planned for late October. In an open letter to Burnham, the group references remarks he made in February, when he was Mayor of Greater Manchester, indicating support for aligning the UK’s hospitality VAT rate with the European average. The letter emphasizes the urgency of the matter, warning that without intervention, a growing number of business closures and job losses within the sector will continue, damaging employment opportunities, particularly for young people.

The petition underpinning the campaign has garnered more than 370,000 signatures, advocating a VAT reduction intended to provide relief to a sector that has faced ongoing financial pressures. The letter states: “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.”

Tom Kerridge, a prominent advocate of the campaign, expressed cautious optimism regarding the Prime Minister’s previous support, saying he was “really encouraged” by the proposal for a lower VAT rate but stressing that the sector requires concrete measures rather than further promises.

The hospitality industry in the UK has sought reduced VAT rates in the past as a means to stimulate recovery following the disruptions caused by the COVID-19 pandemic. Proponents of the cut argue it would help address rising operational costs and support businesses still rebounding from economic challenges. The government has yet to confirm whether it will adopt the 10% rate in the upcoming Budget.