At over 300,000 signatures, here’s what the hospitality industry is campaigning for in their latest VATsTheProblem campaign.
The campaign for reducing hospitality VAT
If you run a pub, café, restaurant or hotel, you’ve probably already seen the posters and beer mats throughout the UK high streets.
The #VATsTheProblem campaign, fronted by chef and publican Tom Kerridge, and backed by UKHospitality, the British Beer and Pub Association and others, is calling on the government to cut hospitality VAT from 20% to 10%.
It’s picked up serious momentum, passing 300,000 signatures within weeks of launching, a quarter of the way to its million-signature goal, and the number is still climbing fast.
What is the purpose of the campaign?
At 20%, the UK has one of the highest hospitality VAT rates in Europe.
This is double that of France, Spain and Italy, who each sit at 10%, and Germany at 7%. Supporters of this campaign say a lower rate would ease pressure on tight margins and help keep venues trading, particularly with food, energy, wage and rent costs all rising at once.
This campaign aims to call into question this higher VAT rate, and push for policy change from the government that would reduce it by half, lightening the pressures on UK hospitality businesses.
Has the VATsTheProblem campaign been successful so far?
To date, the government’s response has been limited.
There’s a temporary VAT cut on children’s meals, down from 20% to 5%, running from 25th June to 1st September 2026. However, the headline 10% rate hospitality businesses are campaigning for hasn’t been adopted.
How will this affect my business?
As this is an active campaign, and not a confirmed change from the government, there are no actions currently required.
Nothing in your VAT return needs to shift as a result of this campaign yet, but it could be useful to follow along.
Why the VATsTheProblem campaign is worth watching if you’re in hospitality
Even without a rate change, campaigns like this tend to keep the pressure on ahead of future fiscal events.
If you run a hospitality business, it’s worth keeping an eye on whether this develops further, particularly around the next Budget, rather than assuming the status quo is fixed for good.
Keep up to date on changes like this via our latest news on the website.
Are you in hospitality and looking to understand VAT changes?
If you’re wondering how VAT changes, if they happen, would affect your figures, get in touch and we’ll walk it through with you.
Please remember if your turnover is under £230,000 per year, your VAT rate could be 5.5-6.5% (for pubs) on the flat rate scheme. Please get in touch with us and we’ll check if this suitable for you.
Contact us today on 0800 999 1800, or send us an email at info@taxdriven.co.uk.
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