The VAT’s The Problem campaign has hit a significant milestone with the number of signatures on a petition to get hospitality VAT lowered to 10%, passing the 250,000 mark.
The campaign — spearheaded by chef Tom Kerridge and supported by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping, and CODE Hospitality — officially launched to consumers yesterday.
Tom is urging the sector to keep up the momentum by sharing the campaign with hospitality teams and other venues, as well as talking to customers.
Among the commercial supporters is wholesaler James Clay and Sons. “Running my own pub and restaurant in the early 80s was the trigger that swiftly led to the formation of James Clay and Sons,” said founder Ian Clay. “I am not sure that making that step would have been possible under today’s squeezed margins in the on-trade.
“More importantly, we are passionate consumers, too, and it is truly painful to watch the continuing trend of venues closing in the UK. These aren’t just numbers on a balance sheet, these are treasured community spaces, and a central pillar of our country’s culture.”
He added: “Hospitality isn’t just an industry — it’s where friendships are built, ideas are shared, and communities come together. When it’s thriving, society feels better for it.
“We believe in a world where quality beer and culture thrives, but that requires an environment that supports pubs, bars, and restaurants — not one that taxes them as heavily as the UK currently does, compared to much of Europe.”
In Germany, the applicable VAT rate is 7%, and in Belgium it is 12% (recently rising from 6%, amid outrage).
Peter Wells, chief executive of Wells & Co, backs the call for 10% VAT, saying that while a reduction would not be a silver bullet, it would be a step in the right direction.
“Having the privilege of operating pubs in both the UK and France gives us a perspective that relatively few hospitality businesses can offer,” he said.
“In France, food and non-alcoholic drinks served in hospitality businesses benefit from a reduced VAT rate of 10%. That reflects a recognition that hospitality is an important contributor to the economy, to employment, and to everyday community life.”
He added that, over the Channel, hospitality jobs were more valued, too. “Hospitality is seen as a career to aspire to, not simply a stepping stone. I believe there is something we can learn from that.”
