UK Hospitality Sector Faces Crisis: Calls for Lower VAT Rate to Save Restaurants
Your favourite UK restaurant could soon disappear — one change might save it
Metro
Image: Metro
The UK hospitality industry is struggling, with 21 independent businesses closing weekly since March 2020. A petition led by chef Tom Kerridge advocates for reducing the 20% VAT rate on hospitality to 10%, aiming to alleviate pressure on restaurants and preserve jobs.
- 01Over 177,600 signatures have been collected for the #VATsTheProblem petition.
- 02The UK has the second-highest VAT rate in Europe for hospitality at 20%, compared to 7% in Germany and 10% in France.
- 03Around 100,000 jobs in the hospitality sector have been lost in the past two years due to financial pressures.
- 04A lower VAT rate could lead to more affordable dining options and a diverse high street experience.
- 05Support for the petition includes endorsements from industry leaders and politicians like Greater Manchester's mayor, Andy Burnham.
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The UK hospitality industry is in crisis, with approximately 21 independent businesses shutting down each week since March 2020. Notable closures include several beloved restaurants in London, such as Tandoor Chop House and Spaghetti House, which recently closed after 70 years. Business owners are urging the government to lower the VAT rate on hospitality services from the current 20% to 10%. This campaign, spearheaded by chef Tom Kerridge, aims to protect local pubs, restaurants, and cafes from disappearing. The high VAT rate is criticized for being the second highest in Europe, which places additional financial strain on these businesses. Advocates argue that reducing VAT could not only save jobs but also make dining out more affordable for consumers. The petition has garnered significant support, with over 177,600 signatures, highlighting the urgency of the issue. Industry leaders stress that without action, the unique dining culture in the UK could be at risk of vanishing, leading to a homogenized high street dominated by chain establishments.
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Reducing the VAT rate could help sustain local restaurants and bars, preserving jobs and enhancing community engagement.
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