Hospitality bosses launch campaign to lower 'unsustainable' VAT rate for firms |
Pub landlords, hoteliers, restaurateurs and local attraction operators are among the business owners calling for the tax to be reduced from 20pc to 10pc.
The UK currently has one of the highest rates of VAT for hospitality in Europe, with the tax being added to most goods and services sold by businesses, including food, drink and accommodation.
The standard VAT rate in the UK from its introduction in 1973 to 2026 (Image: Supplied)
Bosses say that cutting the tax would increase their margins, enabling them to invest in growing and improving their businesses, creating jobs and a better customer experience.
They say that lowering the rate would allow them to bring down their prices, making it more affordable for people to eat and drink out, visit attractions, and book overnight stays.
The hospitality industry continues to come under pressure from a raft of taxes, including hikes to national insurance contributions and business rates in the last year, as well as rising energy bills and employment costs.
Approximately 3.5 million people work in hospitality in the UK.
In Ireland, the government has agreed to cut VAT on food‑led hospitality, including restaurants, cafés and catering services. From July, the rate will be reduced from 13.5pc to 9pc.
Elsewhere in Europe, Germany has permanently reduced VAT on food served in restaurants from 19pc to 7pc, aligning it with takeaway and delivery food.
Marcus Pearcey owns more than a dozen hospitality venues in Norfolk, including pubs, bars, bakeries and cafes.
The businessman has backed a campaign calling for the government to reduce VAT........