30/06/2026
A 10% VAT rate for hospitality isn’t about giving restaurants a tax break. It’s about investing in one of Britain’s biggest employers.
Across Europe, many countries recognise hospitality as a growth industry and tax it accordingly. Lower VAT rates in countries such as Spain, France and Italy have helped support thriving restaurants, cafés and pubs, protecting jobs, encouraging investment and strengthening local economies.
Hospitality isn’t just somewhere to eat or drink. It’s one of the largest employers of young people, offering first jobs, apprenticeships and careers. Every successful restaurant supports a huge network of local suppliers, farmers, breweries, vineyards, laundry companies, cleaners, tradespeople, delivery drivers and countless other small businesses.
When hospitality grows, entire communities grow with it.
One of the biggest misconceptions is that reducing VAT simply means cheaper prices for customers. The reality is far more complex.
Over the last few years, hospitality businesses have faced soaring food costs, energy bills, wages, National Insurance contributions and business rates. A VAT reduction would allow businesses to rebuild sustainable margins, invest in their staff, improve facilities, maintain buildings, create jobs and continue serving their communities. It isn’t about increasing profits—it’s about making businesses resilient enough to survive.
The alternative is one we’re already seeing across the country: closures.
And a business that closes doesn’t collect VAT.
It doesn’t pay corporation tax.
It doesn’t employ local people.
It doesn’t buy from local suppliers.
It contributes nothing to the high street.
A thriving hospitality sector generates far more for the economy than a struggling one.
Sometimes collecting a smaller percentage from thousands of successful businesses is better than collecting 20% from businesses that no longer exist.
It’s time to recognise hospitality as the economic engine it really is.
Support the campaign and sign the petition (link in bio)
Support a permanent 10% VAT rate for hospitality.
