Keir Starmer refuses to back VAT’s the Problem campaign

Keir Starmer has declined to support the hospitality industry’s VAT’s the Problem campaign, which calls for the government to cut hospitality VAT to 10%, in line with Europe.

In yesterday’s (10 June) prime minister’s questions session, Green Party MP, Hannah Spencer, asked Starmer: “Running a business is tough, so will the prime minister join me in backing the VAT’s the Problem campaign to cut VAT rates in hospitality?”

The prime minister avoided answering the question directly, instead saying: “We’re cutting VAT over the summer with our summer savings programme,” referring to the temporary VAT cut from 20% to 5% which will be applied to all children’s menu meals served in restaurants from 25 June to 1 September.

Chef Tom Kerridge is spearheading the VAT’s the Problem campaign, which is backed by industry bodies including UKHospitality, the British Beer & Pub Association and the British Institute of Innkeeping.

Kerridge told The Caterer last week: “It feels like it’s the first time that every sector of hospitality has got an opportunity to come together.

“There are so many different various parts of the sector, but this is the one thing we’re all affected by hugely, every single one, whether you’re a coffee shop or a small independent restaurant or a five-star hotel, it doesn’t matter. VAT is the one thing that makes a difference to all of us.”

Kerridge said having spoken to the Business and Trade Secretary and the Culture Secretary, they agree a VAT reduction for hospitality is necessary, but he said their problem has been “convincing the Treasury”.

“They know it’s something that needs to be done,” he said. “But it’s about showing that maybe for a small, short-term, painful hit for government and the Treasury, there’s huge long-term growth prospects. The fact that we [could] stop 21 businesses a week shutting would be an absolute bonus straight away for them.”

The campaign is calling on all hospitality leaders and their teams to sign the petition calling for VAT relief ahead of the VAT’s the Problem consumer launch on 1 July.

So far, more than 198,000 signatures have been gathered.