A petition calling on the Chancellor to retain the current 12.5 percent VAT rate for the hospitality industry beyond its April deadline has gathered more than 2,000 signatures.
The appeal, started by Fired Up Hospitality Group founder Andy Lennox, comes as many hospitality businesses across the UK predict income difficulties in the new year. “The Hospitality trade has now become the third largest employer in the UK,” states the petition. “But as we see the end of the 5 percent VAT rate and the introduction of a temporary 12.5 percent VAT rate (and the future return to 20 percent) we must finally create a new permanent reduced VAT rate of 12.5 percent for Hospitality and tax our industry fairly.”
Despite the petition reaching over 2,260 signatures, Chancellor Rishi Sunak made no mention of altering the Treasury’s VAT increase in his Budget, with recent government spending proposals increasingly geared instead toward funding the finance industry.
Posting on Twitter the day after the 3 November PMQs, UKHospitality CEO Kate Nicholls stated “cutting bank tax so they’re internationally competitive cost £4bn but they want to put up VAT for everyday treats like a meal out or British holiday and make tourism less internationally competitive.”
“Cost to keep VAT at 12.5 percent under £300m and 2x jobs protected.”