Hospitality Industry Urges Andy Burnham to Cut VAT 2026

The hospitality industry is urging Andy Burnham to lay out plans to lower VAT for the sector, as hundreds of UK businesses warn of closures and job losses without a fairer tax burden. Backed by celebrity chefs including Angela Hartnett and Heston Blumenthal, over 800 businesses have signed an open letter to the prime minister as part of the #VATsTheProblem campaign.

Why Hospitality Businesses Are Demanding a VAT Cut

Hospitality businesses across the UK are struggling with high costs and squeezed margins. The #VATsTheProblem campaign argues that a lower VAT rate would provide much-needed relief, allowing businesses to invest, retain staff, and keep prices affordable for customers. Without action, they warn that more pubs, bars, and restaurants will close, leading to job losses and fewer opportunities for young people.

The Push for Andy Burnham's Support

In February, Andy Burnham, then mayor of Greater Manchester, publicly pledged to argue for a hospitality VAT rate in line with Europe, citing the social value these businesses bring to towns. Now, the industry is calling on him to make good on that promise. The open letter, signed by major chains like Fuller's, Greene King, Pizza Express, and Marriott, as well as hundreds of small independent businesses, urges Burnham to champion the cause at the highest levels of government.

What a VAT Cut Could Mean for the Industry

A reduction in VAT from 20% to 10% could be a game-changer for hospitality. According to the campaign, it would boost consumer spending, create jobs, and help level up the playing field with European competitors. More than 370,000 people have signed the #VATsTheProblem petition, demonstrating widespread public support.

Key Takeaways

• Over 800 businesses have signed an open letter urging Andy Burnham to support a VAT cut for hospitality.
• Celebrity chefs including Angela Hartnett and Heston Blumenthal are backing the #VATsTheProblem campaign.
• A 10% VAT rate could prevent closures, save jobs, and stimulate economic growth.
• Public support is strong, with over 370,000 petition signatures.

Comparing VAT Rates: UK vs. Europe

Hospitality VAT rates in the UK are significantly higher than in many European countries. This disparity puts UK businesses at a competitive disadvantage. The table below highlights the difference:

As shown, the UK's hospitality VAT rate is among the highest in Europe, making it harder for businesses to compete and thrive.

The Economic Impact of Lowering VAT

Lowering VAT for hospitality could have a ripple effect across the economy. By reducing the tax burden, businesses could lower prices, attract more customers, and increase revenue. This, in turn, would lead to higher employment and greater tax contributions over time. The campaign argues that a VAT cut is not just a handout but a strategic investment in the UK's social and economic fabric.

What's Next for the Campaign?

The #VATsTheProblem campaign is gaining momentum, with support from major industry players and the public. The open letter to Andy Burnham is a direct appeal to his leadership and influence. As the mayor of Greater Manchester, Burnham has a platform to advocate for change. The industry hopes he will use it to push for a fairer VAT rate, ensuring the survival and growth of hospitality businesses nationwide.

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