Create a level playing field for the hospitality industry by reducing VAT.

Background

​We call for an immediate and thorough review of VAT currently imposed on the UK’s hospitality sector. The current standard rate of 20% is unsustainable, uncompetitive, and fails to recognise the unique economic and social contribution of our industry. We propose a permanent reduction to 5%. ​

Additional details

Our industry is a cornerstone of our economy. It is one of the largest private employers, providing jobs for 2.7m people. In '23 we contributed almost £70b to the economy. 20% VAT is fundamentally flawed as unlike many other sectors of our core costs are not subject to VAT. Other countries recognise the unique pressures and social importance of hospitality and implement reduced VAT rates.This lower tax burden stimulates growth, encourages tourism, and supports local businesses. This is not a subsidy, but a necessary correction.