Hospitality Businesses Demand VAT Cut in Open Letter to Burnham

More than 800 hospitality businesses, including major chains like Wetherspoons and Marriott International and celebrity chefs such as Tom Kerridge and Heston Blumenthal, have sent an open letter to Andy Burnham demanding a reduction in VAT for the sector. The #VATsTheProblem campaign urges the Prime Minister to lower the rate from 20% to 10% to align the UK with European averages and prevent further business closures and job losses caused by rising energy and labor costs.

During Prime Minister's Questions, Liz Saville Roberts, the Plaid Cymru MP for Dwyfor Meirionnydd, also pressed the Prime Minister to reduce the rate in the upcoming Autumn Budget. She argued that the current tax burden hinders economic growth in rural and coastal communities, noting that hospitality VAT in France, Spain, and Italy is only 10%.

Prime Minister Andy Burnham has declined to make a firm commitment to a VAT reduction, advising that the government's position will be clarified in the budget. While he previously announced a 20% cut in business rates for pubs, clubs, and live music venues as part of a £100m aid package, industry leaders maintain that further action is necessary. Tax advisers from Blick Rothenberg noted that a temporary 5% rate introduced in June for certain family attractions is insufficient to address the sector's unsustainable cost burden.