The campaign, spearheaded by chef, publican and restaurateur Tom Kerridge, is targeting 1m signatures as it calls on the Government to reduce hospitality VAT from 20% to 10%.
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It follows the launch of the campaign’s consumer push earlier this month, which saw pubs, restaurants, hotels, cafés, bars and late night venues encouraged to speak directly to customers about the pressure facing the sector.
The milestone comes after Prime Minister Andy Burnham announced a 20% business rates cut for pubs, clubs and live music venues, with campaigners now calling for VAT to be addressed ahead of the new Chancellor’s first Budget.
Tom Kerridge told The Morning Advertiser (MA): “Absolutely amazing that the campaign has reached 300,000 signatures! It’s creating so much noise and energy! I’m so proud of how the whole hospitality industry has come together for this and I’m hopeful that the government is finally paying attention to us.”
Allen Simpson, CEO at UKHospitality told the MA: “The momentum behind the #VATsTheProblem campaign is impossible to ignore, with over 300,000 people now backing our call for a 10% VAT rate for hospitality.
“While the Government has made encouraging moves recently, there’s still so much more to do. Hospitality needs a long-term, sector-wide solution that creates jobs, unlocks growth and encourages investment. We’re determined to hit one million signatures, so we encourage everyone to keep sharing the campaign to help us make an unmissable case for change.”
In a joint statement, UKHospitality, the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster said Burnham’s business rates cut had sent a “clear message” that hospitality was vital to towns, high streets and communities across the UK.
They said: “His support for our sector, and his promise that ‘the cavalry are coming’ has given thousands of operators a much needed shot in the arm, both in real terms and also in the confidence that he understands the very real danger, as he put it, ‘that too many high streets across Britain are in decline.’
“Our local pubs, restaurants, hotels, cafes, and other hospitality venues are integral to our communities, creating millions of flexible, accessible jobs, and they have the ability to drive the growth that is urgently needed.
“The high levels of support for the campaign demonstrates the strength of feeling for the support hospitality businesses need to ensure they can endure as these keystones of communities across the UK.
“The Government needs to act swiftly, reducing the unsustainable tax burden on the sector, before it is too late.”
Consumer support
The petition had attracted more than 239,000 signatures ahead of the consumer launch and passed 250,000 shortly after going live to the public on 1 July.
The campaign has since launched an online shop offering operators printed materials at cost price, including tent cards, beer mats, receipt cards and posters, alongside free downloadable assets.
The campaign is backed by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and CODE Hospitality.
It argues the UK’s 20% VAT rate places hospitality at a disadvantage compared with other European markets, with campaigners pointing to lower rates in countries including France, Spain, Italy and Germany.
The campaign has also highlighted the Republic of Ireland’s move to reduce its hospitality VAT rate to 9%, arguing the change increases pressure on UK operators, particularly those in Northern Ireland.
Speaking at the campaign’s consumer launch at Kerridge’s Bar and Grill at the Corinthia Hotel in London earlier this month, Kerridge said the aim was to “get 1m signatures” and raise awareness with Government.
He said a VAT cut would allow a “release of pressure” for hospitality businesses and help them survive.
Sector pressure
It comes after survey data from UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster underlined the fragility of the sector, with more than 70% of operators citing VAT, food and drink inflation, and increased staffing costs from rises in national minimum wage and employer NICs as their biggest challenges.
Almost a quarter of respondents said they were operating at a loss, while 5% said their business was no longer viable.
- Operators can sign the petition here
- Campaign assets can be downloaded here
