The campaign VATsEnough is calling on the chancellor to make the 12.5% VAT rate permanent for hospitality and tourism, to avoid price increases, help businesses and the economy to recover. UKHospitality is urging those in the hospitality industry and its customers, to back the cause and speak to their MPs.
An increase in VAT could increase prices and the cost of eating out, deterring people from eating out and supporting these businesses.
Kate Nicholls, chief executive of UKHospitality stated, “Our businesses bring light, life and heart to communities across the country, but are battling huge challenges in terms of labour shortages and the food supply chain after 18 months of desperate struggle due to the pandemic….By introducing a permanent 12.5% rate of VAT in his autumn Budget, the chancellor can help us bounce back strongly, keep prices affordable for customers and level up UK jobs. Lower VAT will foster investment in businesses and high streets, accelerating our recovery from the pandemic. Let’s lock in VAT at 12.5% permanently.”
The industry lost over £100bn during the lockdown months, and 12,000 venues had to close.