The letter, organised as part of the #VATsTheProblem campaign, calls on Burnham to deliver a 10% VAT rate for hospitality, after he publicly backed a lower rate while Mayor of Greater Manchester earlier this year.
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Signatories include pubs, bars, brewers, restaurants, hotels, tourism businesses and leisure operators, with the campaign saying the vast majority are small and medium-sized businesses.
Pub, bar and brewing businesses backing the letter include Fuller’s, Greene King, Loungers, Marston’s, Mitchells & Butlers, Punch Pubs & Co, Robinsons Brewery, St Austell Brewery, Stonegate Group, Timothy Taylor’s and JDW (JD Wetherspoon).
Celebrity chefs including Tom Kerridge, Angela Hartnett, Heston Blumenthal, Jason Atherton, Nathan Outlaw, Paul Ainsworth, Clare Smyth and Andi Oliver have also signed, alongside restaurant and accommodation groups such as Wagamama, Wahaca, Pizza Express, Franco Manca, Best Western Hotels, Butlin’s, Center Parcs, Haven and Marriott International.
The campaign said its petition calling for VAT to be cut to 10% for hospitality had reached 372,096 signatures at the time of writing.
The latest push comes after Financial Secretary to the Treasury James Murray last month warned a VAT cut would come at a significant cost and would need to be fully funded, although he did not rule out further support at the Budget.
‘Fairer tax burden’
The open letter said: “It’s time for a fairer tax burden for hospitality. Without action, closures will only continue to accelerate, jobs will continue to be lost and opportunities for young people reduced.
“More than 370,000 people have signed the #VATsTheProblem petition calling for a 10% rate of VAT for hospitality, bringing the UK in line with the European average.”
The letter said Burnham had previously said he would argue for a VAT rate “more consistent with what you find in Europe” because of the social value hospitality businesses bring to towns and communities.
It added: “A lower rate of VAT for hospitality can turn closures into openings, lost jobs into new jobs, and boarded up high streets into thriving centres of community. Alongside your policy to reform business rates for the high street, we urge you to bring forward your plans to deliver a lower rate of VAT for hospitality.”
Hospitality businesses are being encouraged to sign the petition and share it with staff and other venues.
‘We need action’
Kerridge said hospitality businesses had come together with “one simple ask” of the Prime Minister.
He said: “It’s clear that the Prime Minister understands the importance of hospitality, and I was really encouraged to hear him make the case earlier this year for a lower rate of VAT for our sector.
“The reality is that 20% VAT is holding hospitality back. Hospitality is different from many other businesses because so much of what we spend our money on is our teams. You can reclaim VAT on a product, but you can’t reclaim VAT on a person. That makes a 20% rate particularly tough for a sector where labour is one of our biggest costs.”
Kerridge said operators were also dealing with rising wages, energy bills, food costs and business rates.
He added: “We don’t need another promise. We need action.”
The letter follows the Government’s announcement of a 20% cut to business rates for pubs, clubs and live music venues from April next year.
