Johnson calls for VAT-cut campaign

Luke Johnson, the serial restaurant investor, has called on the whole hospitality industry to come together to campaign for a cut in the level of VAT.

Speaking at the PMA's sister title Restaurant's R200 conference, Johnson, whose investments include Giraffe, Feng Sushi, Ego and Patisserie Valerie, said that the

sector could get results if it lobbied as one.

He said: "This is not a fantasy, it can be done. All trade bodies should be spending time on this issue. The larger chains are mad not to be interested in this subject. A cut in VAT has been shown to work abroad. The reduction in France has transformed the industry there."

Johnson said that he had already held talks with Government figures on the subject of a VAT cut and these talks were continuing behind the scenes, with "senior figures within the industry slowly getting on board".

When asked if there should be a specific VAT figure that the industry should be campaigning for, Johnson agreed that a targeted level would be beneficial during lobbying.

Foot in the door​

British Hospitality Association (BHA) chief executive Ufi Ibrahim told delegates that the association continued to have "positive" meetings with the Treasury about the call to reduce VAT for the industry.

Working with Deloitte, the BHA has put together 28 case studies from around the world showing the impact of a reduction in VAT on a country's economy, including its role in creating jobs.

Ibrahim said that Treasury ministers were currently looking at the detail of the research, which includes a dissection of the VAT model in the UK.

She said: "We have our foot in the door and hope to have further meetings."

In February this year, the Morning Advertiser launched its Thrive on 5 campaign, which is calling for a reduction in VAT to 5%.

The campaign has already gained the support of leading industry figures such as JD Wetherspoon chairman Tim Martin, and influential French leisure entrepreneur and lobbyist Jacques Borel.

Speaking at the MA250 business conference for multi-site operators earlier this year, Borel, the man behind the cut in VAT to 5.5% for the hospitality sector in France, said a decrease could be in the UK pre-Budget report in October 2013, with implementation by April 2014 — if the sector got behind the lobbying of Government.