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Bristol Hoteliers Association is backing celebrity chef Tom Kerridge’s ‘VAT’s the Problem’ campaign, which is calling for a 10% tax rate to protect profit margins within the hospitality industry.
While the trade association is expecting stronger summer trading for 2026, it warned that a reduction in value added tax is required to provide a firm foundation for local businesses.
Kerridge’s campaign has attracted more than 100,000 signatures in less than 72 hours of its launch, and has received support from other trade bodies including UKHospitality and CODE Hospitality.
Association chair Adam Flint said hotel occupancy in the city grew by 3% this year compared to last year, but at the cost of average room rates.
With operating costs rising between 3% and 13%, Flint warned that overall hospitality profits remain flat or down year-on-year across the city.
Despite these ongoing economic challenges, Flint noted that upcoming local events mean there are plenty of reasons to remain optimistic about summer trading.
Flint said: “While we cannot control rising costs in a lot of areas, one thing for sure is a reduction in VAT will encourage consumer sales and bring prices down to a more reasonable level, as many other countries in Europe operate with right now.
“The hospitality sector relies on sales growth to maintain job numbers and profit margins, so for the BHA, it’s a no-brainer to support the #VATsTheProblem campaign. June has started well, and we welcome international cricket to the city which will certainly help boost the local economy, as we saw with rugby last September.”
He added: “Looking towards July and the run up to summer, general occupancy is looking quite healthy, albeit at the loss of ADR once again. We’ve got Bristol Pride, the Harbour Festival, graduation ceremonies and the Balloon Fiesta, as well as many more smaller music events, all of which will hopefully provide a decent base for local hotels and the economy, so there is still cause for optimism – but it would be a lot better if we can get that helping hand from a reduction in VAT.”
