01/07/2026
Hospitality is one of the UK’s greatest success stories. It employs millions of people, gives young people their first jobs, keeps high streets alive and brings communities together.
But the sector is under enormous pressure.
Rising energy costs. Food inflation. Huge employment costs. Unjust business rates. The highest tax burden in the UK economy.
And on top of all of that — a 20% VAT rate that is among the highest in Europe.
On 1 July, the hospitality industry is coming together to launch ‘VAT’s the Problem’ — the united sector campaign calling for hospitality VAT to be reduced from 20% to 10%.
This is a plan for fair tax.
This is a plan for growth.
Countries including Spain, Italy, France, Ireland and Germany know how important hospitality is to society, and they know it pays too much tax. That’s why they already support hospitality with lower VAT rates. The UK deserves the same.
A 10% VAT rate would:
• Support pubs, restaurants, cafes, hotels and
• nightclubs, and many more.Get businesses
• investing in jobs and helping our customers
• Strengthen high streets and local communities
Because when hospitality businesses close, communities lose far more than places to eat and drink — they lose connection, opportunity and local identity.
This campaign is about everyone: Our customers, waiting staff, chefs, kitchen porters, bar staff, hotel teams, farmers, brewers, suppliers and producers.
Tom Kerridge is spearheading this nationwide movement, and we are asking the whole of hospitality to stand together to say Vat’s The Problem – 10% is fair for hospitality.
10% VAT is fair for hospitality.
