Ahead of the upcoming autumn Budget, the campaign, launched by celebrity chef Tom Kerridge this summer, has called on the UK Government to slash the rate of VAT for hospitality businesses from 20% to 10%.
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The backing comes after more than 100 Scottish chefs and hospitality businesses last week called on First Minister John Swinney to support the campaign and lobby the Treasury for a reduced rate for the sector.
Signatories included chef and #VATsTheProblem campaign ambassador Tom Kitchin, Lorna McNee and the Balmoral Hotel in Edinburgh.
Full support
Responding to the Scottish Government’s backing, Kitchin said: “It’s fantastic to see the Scottish Government and the SNP put their full support behind the #VATsTheProblem campaign and join our calls for hospitality VAT to be reduced to 10%, in line with Europe.
“We saw just last week the enormous support from across Scottish hospitality for a fairer VAT rate for the sector and you only need to look at the 390,000 supporters the campaign has amassed to understand just how many people believe it is necessary to support their local hospitality venues.
“I hope we will see the other political parties in Scotland and MSPs back the campaign, as well as Scottish MPs, to put even more pressure on the UK Government to act.”
Deputy First Minister Jennifer Gilruth has since written to the UK Government in support of the campaign, urging ministers to listen to the sector’s calls ahead of the Budget next month.
Meanwhile, Calum Kerr MSP has also written to the Prime Minister on behalf of the SNP, reiterating calls for the UK Government to introduce a 10% hospitality VAT rate.
Serious consideration
“This is something the SNP has consistently called for and we are proud to stand behind the #VATsTheProblem campaign with the Deputy First Minister having written to the Treasury last week too,” Kerr wrote.
“I therefore urge you to use the forthcoming Budget to introduce a 10% VAT rate for hospitality across the UK.
“I hope you will give this proposal the serious consideration it deserves and commit to reducing hospitality VAT to 10%.”
Earlier this month, more than 800 hospitality businesses signed an open letter calling for VAT to be cut to 10%, arguing the current 20% rate was putting increasing pressure on operators.
At the time of publication, the #VATsTheProblem petition had amassed more than 390,000 signatures.
- Sign the petition here
