The Art School’s Chef Patron supports campaign to lower hospitality VAT to 10%
Pubs, restaurants, cafes hotels, bars, nightclubs and those who support them are being urged to sign a petition calling for our government to lower VAT paid by hospitality businesses to 10%, in line with that of Europe, to help reduce the financial pressures these businesses are facing and help them keep their doors open during these turbulent times.
The UK has a 20% VAT rate, making it the highest VAT rate for hospitality in Europe. Most other European countries have a much lower rate - for example; France, Italy and Spain have all adopted a 10% rate whereas Germany has an even lower rate at 7%.
A 10% VAT rate will reduce the cost pressures faced by businesses in the UK, meaning more venues will be able to stay afloat and keep their doors open rather than make the difficult and often life- changing decisions to close.
With over 100,000 hospitality jobs lost over the last two years alone and a growing number of businesses affected week on week, these businesses and their supporters are banding together to take action and speak out.
A sector-wide campaign called #VATSTheProblem, spearheaded by Michelin-starred Chef Tom Kerridge, has been launched alongside a petition aiming for one million signatures.
Speaking in support of the campaign, Paul Askew - Chef Patron at Liverpool’s renowned The Art School restaurant - shares his thoughts with us.
“We’ve not done anything wrong to get here,” says Paul, in relation to the businesses like his that are being affected. “It’s just the circumstances that we find ourselves in, but more importantly, it’s the choices that have been made by the government that are tipping us over the edge,” adding “A government is supposed to assist businesses and promote the betterment of the country and growth in the economy. It’s not there to promote youth unemployment and businesses going bust.”
Paul says the continued strain on hospitality businesses and lack of support from the government is ‘criminal’.
“If you're a fresh-orientated artisan business who employs quite a few people like we do, it's virtually impossible to perform now,” he says, adding: “If we were to put up our menu prices to the same percentage that our cost of doing business has gone up to, nobody would come through the front door.”
Turning to cheaper suppliers for produce isn’t an option for most of these kinds of businesses either, as if they start to compromise the quality they will lose custom as they are no longer being true to their brand ethos.
“We wouldn't be The Art School anymore if I changed those things,” he explains.
Paul is urging for people to show support for their local hospitality businesses now more than ever.
“Keep the momentum going, keep supporting your local independents, and try and get us out the other side,” he adds, concluding with a message for the government: “All they have to do is look at what's happened in Ireland. They've shown that the tax receipts actually grew by reducing VAT, and now they're going to reduce them again on the first of July. So if ever they needed a role model or an example to follow, then look towards Ireland.”
To sign the petition and learn more about the campaign, visit vatstheproblem.co.uk.
Get the latest news to your inbox
Get the latest food & drink news and exclusive offers by email by signing up to our mailing list. This is one of the ways that Confidentials remains free to our readers and by signing up you help support our high quality, impartial and knowledgable writers. Thank you!
