The chef, publican and restaurateur is spearheading the #VATsTheProblem campaign, which is calling for hospitality VAT to be cut to 10%.
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The campaign will launch to consumers on Wednesday (1 July), with pubs, restaurants, hotels, cafes and bars encouraged to speak directly to customers about the pressure facing the sector and urge them to sign the petition.
239k signatures and rising
The petition has already attracted more than 239,000 signatures, with the campaign targeting 1m.
- You can sign the petition here.
Speaking at the consumer launch of the campaign at Kerridge’s Bar and Grill at the Corinthia Hotel, London, Kerridge said the pressure was being felt across the whole of hospitality.
He said pubs, restaurants, hotels, coffee shops, nightclubs, bars, late night venues and music spaces were all facing the same issues.
Kerridge said: “This shows why we need hospitality VAT cut to 10%. Our hospitality culture in the UK is the best in the world, but we continue to be hit with unfair levels of tax.
“Just look across Europe. Almost every other country recognises the need to support hospitality with a lower rate of VAT. Now, Ireland becomes the latest.
“235,000 people agree with us that the Government should act to bring hospitality VAT down to 10%, in line with Europe. VAT is the problem, 10% is fair for hospitality.”
New data
New survey results from UKHospitality, the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster found 16% of hospitality businesses said they were at risk of failure within the next 12 months.
Almost a quarter of respondents, 23%, said they were now operating at a loss, up from 15% three months ago, while 5% said their business was no longer viable.
The figures come as the Republic of Ireland prepares to reduce its hospitality VAT rate to 9% from 1 July, which campaigners said further highlighted the UK sector’s tax disadvantage.
An online shop has also launched to help operators promote the campaign in venues. Free downloadable assets include tent cards, beer mats, cards to place with receipts, in reception areas or in hotel rooms, and posters for both front of house and staff areas.
The shop includes files operators can print themselves, as well as versions with print bleeds that can be sent to print providers. Further assets are expected to be added in the coming weeks, including printed materials available to buy at cost price.
The trade bodies said: “We are seeing the devastating impact of hospitality’s heavy tax burden escalate before our eyes.
“The reality is stark. The number of businesses now operating at a loss is accelerating rapidly and too many businesses are facing the gut wrenching decision of whether they have to close their doors for good.
“The Government needs to act to back hospitality and reduce its tax burden. The sector is united, a cut to VAT is the most impactful way to support hospitality and drive growth. The Government should cut VAT to 10%, bringing the UK in line with Europe.”
