Editor’s comment: VAT’s the Problem is a real chance to make a difference

We repeatedly hear from politicians about how hospitality is vital for the economic and societal health of the nation.

Prime minister Keir Starmer has described our sector as “a foundational pillar of the UK’s everyday economy”, but his government’s repeated tax raids undermine any notion that there is an understanding of the pressure businesses are under.

We have reported on the countless operators who are prepared to stick their head above the parapet and admit that they are merely clinging on to their businesses following changes to national insurance and business rates, on top of the highest rate of VAT in Europe. Others haven’t been able to weather a storm that shows little sign of easing.

Which is why The Caterer is fully behind Tom Kerridge’s VAT’s the Problem campaign to reduce the rate of VAT on hospitality to 10%.

The high-profile chef has already been using his platform to raise awareness of the challenges of running businesses through regular media appearances. He has now formalised his campaigning with this project, which aims to collect one million signatories to a petition for 10% hospitality VAT.

At the time of writing, just two days after its launch, the petition has already reached more than 100,000 signatories.

To Kerridge’s credit, he has not just given everything to ensure he spreads the message far and wide, he has done so with an approach that has unified the sector and its varied associations under one simple message. 

As Kerridge says: “Now is the time for hospitality to galvanise behind this campaign. Be part of a movement that aims to get hospitality recognised and taxed in a much fairer way. I know that the government is listening, but we do need to push hard.”

Right now, he is pushing for the industry to sign the petition before it is launched to the consumer on 1 July.

So if you and your teams haven’t already signed, now is the time.

We have a chance to gain some real momentum and make this issue, which is existential to many businesses, rise to the top of the political agenda.

There has already been an acknowledgement that VAT can be the lever to pull to support growth after Rachel Reeve’s Great British Summer Savings package proposed cutting VAT for items on children’s menus from 20% to 5% between 25 June and 1 September, so the door is ajar.

Let’s make a meaningful VAT reduction across the board a permanent measure to allow all those struggling hotels, pubs and restaurants to continue to deliver for their communities and the economy.