Hospitality industry urges Andy Burnham to lay out VAT cut plans
More than 800 businesses ask PM to make good on pledge, or risk more closures and job losses Hundreds of UK hospitality businesses, backed by celebrity chefs including Angela Hartnett and Heston Blumenthal, have asked Andy Burnham to lay out plans to lower VAT for the sector, urging him to make good on his previous pledge. More than 800 businesses have written an open letter to the prime minister…
Over 800 businesses in the UK hospitality sector have urged Prime Minister Andy Burnham to lower the VAT rate for the industry, warning that current tax rates could lead to more closures, job losses, and fewer opportunities for young people. Celebrities like chefs Angela Hartnett and Heston Blumenthal, along with restaurant groups such as Wetherspoons, Pizza Express, and Franco Manca, have joined the campaign under the hashtag #VATsTheProblem.
The letter highlights the disproportionate impact of a 20% VAT rate on labor costs, which account for a significant portion of expenses for businesses in the sector. The letter also comes after Burnham, previously mayor of Greater Manchester, pledged to advocate for a hospitality-specific VAT rate in line with European standards, a move that garnered support from over 370,000 people through an online petition.
Despite the Prime Minister's initial business rate cut of 20% for pubs, clubs, and live music venues, Burnham called for further action, emphasizing that a lower VAT rate could transform the current situation and stimulate economic growth in the community.
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