Trade Organisations

UKH calls for lower VAT rate in new campaign

The campaign comes in the wake of the VAT rate for hospitality and tourism businesses rising to 12.5%, on 1 October 2021

UK Hospitality has announced a new campaign #VATsEnough which is aimed at calling on
the Chancellor Rishi Sunak to make the 12.5% VAT rate permanent for hospitality and tourism.

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.”

Nick Mackenzie, CEO of Greene King, added: “The VAT reduction has helped the hospitality sector stay afloat during the last 18 months, but we are facing continued long-term challenges.

“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.”

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