03/06/2026
Hospitality in the UK is facing one of its toughest periods in decades, and for small independent businesses like ours here at Ahoy Dunoon, VAT is one of the biggest challenges we face.
For every pound that comes through our tills, 20% VAT goes straight to the Government before we even begin to cover rising food costs, energy bills, wages, National Insurance contributions, business rates, insurance, maintenance and everything else it takes to keep a restaurant open. Independent operators across the country are feeling the strain.
This is why Michelin-starred chef Tom Kerridge of The Hand & Flowers has launched the campaign, calling for hospitality VAT to be reduced from 20% to 10%. The campaign has already gained significant support across the industry, with tens of thousands of signatures from people who understand that hospitality is about far more than simply serving food and drink.
Hospitality is often the heart of our communities. It’s where families celebrate milestones, friends come together, visitors discover our towns and villages, and where many young people get their very first job. Here in Dunoon, businesses like ours provide employment, training opportunities and help bring visitors into the local economy.
A reduction in VAT wouldn’t be about increasing profits. It would be about survival. It would allow independent restaurants, cafés, pubs and hotels to reinvest in staff, improve facilities, keep prices fair for customers and continue serving their communities. Industry leaders have repeatedly warned that many operators are struggling to remain viable under current cost pressures.
We’re asking our customers, friends and fellow hospitality professionals to support the campaign and help protect an industry that employs millions of people across the UK.
Please take a moment to learn more and add your voice:
VATs The Problem Campaign
https://www.vatstheproblem.co.uk/
Together, we can help secure the future of British hospitality and ensure independent businesses continue to serve our communities for generations to come.
View fullsize VAT at 10% is fair for hospitality. VAT at 10% is fair for hospitality. Sign our petition for 10% hospitality VAT Data protection and privacy policy Do you want to back your favourite venue, help your high street and support local jobs? Then sign our petition to lower the rate of VAT f...
