Hospitality industry unites behind call for VAT cut to 10 per cent
23rd July 2026
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The campaign’s target is to achieve one-million signatures and is over a quarter of the way there.

Cafes, bars, pubs and restaurants have all got behind the campaign spearheaded by chef, restaurateur and pub owner Tom Kerridge to persuade the Government

The campaign argues that a lower VAT rate would help to keep venues open, protect jobs, support investment, strengthen high streets and help businesses keep prices more affordable for guests. 

It also draw parallels from European countries with thriving hospitality sectors including France, Spain and Italy who charge only 10 per cent VAT while Germany charges just seven per cent.

Ann Tonks (pictured), director of Chapter restaurant and bar in Edgbaston, said: “There’s a misconception that VAT in hospitality is an added tax on the consumer, which it’s meant to be.

“However it’s become a tax that’s now absorbed by the venue. We can no longer set out our prices with the margin we need to make and then add another 20 per cent on top - the price point would be uncommercial.

“With eye- watering rises in utility costs, minimum wage, NICs and food inflation, we’re all struggling to keep our prices at accessible levels.

“Consequently, every quarter, each venue has to give up an unsustainable level of turnover to HMRC.

“We’re urging people to sign the petition to give our industry a better chance of survival, allowing us to keep more income so we can grow, invest in our businesses and create more jobs.

“The Hospitality sector has long made the point that it is one of the most democratic, diverse employers in the country reaching hard- to- penetrate communities and a positive pathway for the economically inactive.

“While hospitality is a discretionary spend it’s essential to the nation’s economy and culture

“As a key employer, cultural asset and heartbeat of the high street, we can be a source of inclusive, sustainable growth. We just need enough oxygen to survive.”

Visit the campaign website for more information and to sign the petition.

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