The Scottish government has announced its support for the #VATsTheProblem campaign, which aims...

Seventy-five per cent of publicans stand ready to invest if taxes are reduced -- but two in five expect to close if the tax burden rises yet again

More than 800 hospitality businesses and industry figures are urging the government to cut VAT as rising wages, business rates and a new visitor levy add to the sector’s costs.

More than 800 businesses and owners have signed a letter to the prime minister asking about his pledge to introduce a lower rate of VAT for hospitality

Prime Minister Andy Burnham is under pressure from more than 800 hospitality businesses to follow through on his promise in implementing a tax cut for the industry. In February, the former Greater Manchester Mayor committed to slashing VAT for the sector from 20 per cent to 10 per cent. ### A letter, organised under the VATsTheProblem campaign banner, lands on the same day Mr Burnham welcomes business leaders to Downing Street for events designed to position his Government as a "partner for growth" and a reliable foundation for UK investment. The signatories are demanding the PM set out a concrete plan for introducing the reduced rate, rather than simply reiterating his earlier backing for the measure. ### ### Celebrity chefs, major restaurant chains, pub groups, and leisure operators are among those backing the appeal. Among the most prominent figures backing the letter are celebrity chefs Heston Blumenthal and Tom Kerridge. Restaurant brands including Bill's, Franco Manca, Pizza Express, and Wagamama have also signed up. The pub and brewing industry is well represented, with Fuller's, Greene King, Robinsons Brewery, and Wetherspoon's all adding their names. Hotel operators such as Center Parcs, Haven, and Marriott International round out the list of major signatories. UKHospitality claims the "majority of the signatories are small and medium-sized businesses that operate venues at the heart of their communities." In the letter, Mr Kerridge said: "It's clear that the Prime Minister understands the importance of hospitality, and I was really encouraged to hear him make the case earlier this year for a lower rate of VAT for our sector. ### ### LATEST DEVELOPMENTS * Wetherspoon to launch 30 new beers next month - with pints from just £2.40 * Andy Burnham considers major Labour manifesto climbdown amid growing youth jobs crisis * Supermarket shock as canned mackerel contains NO British mackerel: 'Real concern!' ### ### "The reality is that 20 per cent VAT is holding hospitality back. Hospitality is different from many other businesses because so much of what we spend our money on is our teams. You can reclaim VAT on a product, but you can't reclaim VAT on a person." He pointed to the compounding pressures of climbing wages, energy bills, food costs, and business rates, noting that venues are "closing their doors every single week". In their letter, the businesses warned the Prime Minister that without intervention, venue closures will keep accelerating, jobs will be shed, and prospects for young people will diminish. The campaign has garnered significant public support, with more than 370,000 people signing the VATsTheProblem petition demanding a 10 per cent hospitality VAT rate that would bring Britain into line with the European average. ### ### The signatories argued that a reduced rate could transform "closures into openings, lost jobs into new jobs, and boarded-up high streets into thriving centres of community" . They urged Mr Burnham to bring forward his plans for a lower hospitality VAT rate alongside his existing policy to reform business rates for the high street. Revitalising Britain's high streets has been a central theme of Mr Burnham's premiership, during which he has pledged to grant councils fresh powers to prevent the spread of vape and betting shops and promised to reduce business rates for pubs. Last month, he said: “For many people, the high streets they grew up with have been hollowed out and become unrecognisable over decades of decline. "That’s not on. I said we would improve Britain’s high streets, and that’s exactly what we are starting to do. We’re putting communities back in control and giving local people a real say over what opens on their high street." ### **Our Standards: The GB News Editorial Charter**

More than 800 businesses ask PM to make good on pledge, or risk more closures and job losses

More than 800 businesses ask PM to make good on pledge, or risk more closures and job losses Hundreds of UK hospitality businesses, backed by celebrity chefs including Angela Hartnett and Heston Blumenthal, have asked Andy Burnham to lay out plans to lower VAT for the sector, urging him to make good on his previous pledge. More than 800 businesses have written an open letter to the prime minister as part of the #VATsTheProblem campaign, to warn that without a “fairer tax burden for hospitality”, there will be more closures and job losses, and fewer opportunities for young people. Continue reading...

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