Hospitality businesses urge UK Prime Minister to cut VAT

More than 800 hospitality businesses, including major brands like Wagamama, Pizza Express, and Wetherspoon’s, have urged Prime Minister Andy Burnham to reduce the Value Added Tax (VAT) rate for the sector from 20% to 10%. The campaign, supported by industry body UKHospitality and celebrity chefs such as Tom Kerridge and Heston Blumenthal, argues that the current rate is a significant barrier to economic growth and contributes to business closures and job losses.

During Prime Minister’s Questions, Plaid Cymru MP Liz Saville Roberts highlighted that the UK's hospitality VAT rate is among the highest in Europe, noting that countries like France, Spain, and Italy maintain rates around 10%. She urged the Prime Minister to consider this change in the upcoming Autumn Budget to support rural and coastal communities.

Prime Minister Andy Burnham acknowledged the challenges facing the industry and noted his previous decision to cut business rates for pubs. While he did not commit to a specific VAT reduction, he advised waiting for the budget announcement.