02/06/2026
VATS THE PROBLEM
Hospitality is one of the UK’s greatest success
stories. It employs millions of people, gives
young people their first jobs, keeps high streets
alive and brings communities together.
But the sector is under enormous pressure.
Rising energy costs. Food inflation. Huge
employment costs. Unjust business rates.
The highest tax burden in the UK economy.
And on top of all of that — a 20% VAT rate that
is among the highest in Europe.
On 1 July, the hospitality industry is coming
together to launch ‘VAT’s the Problem’ — the
united sector campaign calling for hospitality
VAT to be reduced from 20% to 10%.
This is a plan for fair tax.
This is a plan for growth.
Countries including Spain, Italy, France, Ireland
and Germany know how important hospitality is
to society, and they know it pays too much tax.
That’s why they already support hospitality with
lower VAT rates. The UK deserves the same.
A 10% VAT rate would:
• Support pubs, restaurants, cafes, hotels and
• nightclubs, and many more.Get businesses
• investing in jobs and helping our customers
• Strengthen high streets and local communities
Because when hospitality businesses close,
communities lose far more than places to eat
and drink — they lose connection, opportunity
and local identity.
This campaign is about everyone: Our
customers, waiting staff, chefs, kitchen porters,
bar staff, hotel teams, farmers, brewers, suppliers
and producers.
Tom Kerridge is spearheading this nationwide
movement, and we are asking the whole of
hospitality to stand together to say Vat’s The
Problem – 10% is fair for hospitality.
UKHospitality
