While the Treasury’s decision last year to reduce VAT for these sectors helped many venues survive the crisis, under current plans VAT will return to its pre-pandemic level of 20% come April 2022.
The trade association is now “urging” customers, suppliers, hospitality venues and employees to “lobby” their MPs on the need to lock in the 12.5% VAT rate for local pubs, bars, restaurants, hotels and other sector businesses.
Kate Nicholls, chief executive of UKHospitality, said: “We’re launching the #VATsEnough campaign because a failure to act risks the future of hotels, cafés, pubs, restaurants and myriad other venues and attractions across the country.
“Our businesses bring light, life and heart to communities across the country but are battling huge challenges in terms of labour shortages and the food supply chain after 18 months of desperate struggle due to the pandemic.”
“At Greene King, we have around 2,800 pubs in communities of all sizes and types, and making 12.5% VAT permanent will allow us to plan, invest, as well as create jobs across the country and support the government’s levelling up agenda.”