Hundreds of hospitality businesses call on Burnham to lower VAT

Prime Minister Andy Burnham departs 10 Downing Street, London (Stefan Rousseau/PA) PA Wire Sam Hall 2 minutes ago More than 800 hospitality businesses have written to the Prime Minister urging him to set out how he will introduce a lower rate of VAT .

The VAT’s The problem campaign has called for the hospitality VAT rate to be reduced from 20% to 10%.

Businesses involved in the campaign have signed a letter urging Andy Burnham to deliver on his public support in February for a lower rate of VAT for hospitality.

The letter comes as Mr Burnham gathers business leaders in Downing Street on Monday to pledge to back entrepreneurs.

The Prime Minister is expected to host a series of events in No 10 aimed at pitching his Government as a “partner for growth” that can offer a stable platform for investment in the UK.

Reviving Britain’s high streets has been a key focus for Mr Burnham since he took over in No 10, promising to give councils new powers to block vape and betting shops and pledging to cut business rates for pubs.

Notable names to sign the letter calling for a VAT cut include celebrity chefs Heston Blumenthal and Tom Kerridge and restaurants Bill’s, Franco Manca, Pizza Express, and Wagamama.

Mr Kerridge said: “20% VAT is holding hospitality back”, adding that the sector “is different from many other businesses because so much of what we spend our money on is our teams”.

Pubs, bars and brewers among the signatories include Fuller’s, Greene King, Robinsons Brewery, and Wetherspoon’s, as well as resorts such as Center Parcs, Haven, and Marriott International.

UKHospitality said the “vast majority of the signatories are small and medium-sized businesses that operate venues at the heart of their communities”.

In the letter, the signatories told Mr Burnham: “It’s time for a fairer tax burden for hospitality. Without action, closures will only continue to accelerate, jobs will continue to be lost and opportunities for young people reduced.

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“More than 370,000 people have signed the #VATsTheProblem petition calling for a 10% rate of VAT for hospitality, bringing the UK in line with the European average.