Supporting hospitality businesses across the region
As a commercial property practice working with owners and occupiers of hospitality venues across the South West, we are supporting #VATsTheProblem, a campaign spearheaded by chef Tom Kerridge.
The campaign is calling on the UK Government to reduce hospitality VAT from 20% to 10%. Find out more about the campaign at www.vatstheproblem.co.uk.
The case for reducing hospitality VAT
Current taxation is placing significant pressure on pubs, cafés and restaurants. The campaign is calling for a fairer rate that is more closely aligned with European averages.
Supporters argue that reducing VAT could create opportunities for lower prices at the counter, increased sales volumes and potentially greater overall VAT receipts. It could also give hospitality businesses more scope to invest, retain employees and plan for the future.
Why the campaign matters
Fairer taxation
The UK’s hospitality VAT rate is currently 20%, while countries including France, Spain, Italy and Ireland operate with lower rates for parts of the sector.
Rising operating costs
Hospitality businesses are facing a combination of wage inflation, business rates liabilities and higher energy, food and supply costs. These pressures are making it increasingly difficult for otherwise viable venues to remain profitable.
Protecting jobs and communities
Pubs, cafés and restaurants provide employment while also serving as important social and economic hubs. A reduction in VAT could help businesses protect local jobs, invest in their teams and keep their doors open.
A growing national campaign
The campaign is supported by major industry organisations, including UKHospitality and the British Institute of Innkeeping.
A national petition is calling on the Government to address the issue. With support already exceeding 250,000, we encourage hospitality operators, customers and property professionals to learn more and consider adding their voices.
Michael Easton comments
Michael Easton, hospitality and leisure property specialist at Vickery Holman, said:
“Hospitality is the linchpin of how we interact and enjoy our time together, whether through business or pleasure. It provides a platform for social interaction for staff and customers alike, and it is under significant financial pressure right now.
“I fully endorse this campaign and urge all our contacts to read the comprehensive information provided and add their support. This could be a solution to protect venues for the longer term, allowing us all to continue to use and enjoy them.”
Support for hospitality property owners and occupiers
Vickery Holman advises hospitality and leisure property owners and occupiers across the South West. For specialist support with sales, acquisitions, lettings and other property matters, visit our Leisure Property Services page: Expert Advice for Leisure Property Owners in the South West – Vickery Holman
