Chefs back Burnham VAT pledge as hospitality pressure mounts

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Leading chefs and restaurateurs have welcomed Andy Burnham’s call for a cut in VAT for hospitality, as pressure grows on the government to provide greater support for pubs, restaurants, cafés and foodservice operators.

The Greater Manchester mayor, who has been selected as Labour’s candidate in the Makerfield byelection, has backed industry calls for VAT on hospitality to be cut from 20 per cent to 10 per cent. His position comes as the Tom Kerridge-led “VAT’s the problem” campaign gathers momentum across the sector.

Kerridge, whose hospitality portfolio includes Michelin-starred pubs, said Burnham had shown a strong understanding of the role restaurants, pubs and nightlife play in local economies.

He said the sector had reached “full breaking point” after being hit by rising business rates, employer national insurance, wage costs, energy bills and food inflation.

Kerridge also criticised Reform UK leader Nigel Farage’s pledge to cut hospitality VAT to 10 per cent, arguing that Farage’s plan to help fund the move by reinstating the two-child benefit cap was not something he could support.

Burnham has made hospitality and high street support a central part of his return-to-Westminster pitch. In recent days, he has also pledged to cut business rates for pubs, clubs and music venues by 20 per cent, while raising thresholds for small businesses including cafés, shops and leisure operators.

Sacha Lord, Burnham’s former night-time economy adviser in Greater Manchester, said a VAT reduction remained the “one single mechanism” that could protect hospitality jobs and businesses.

Wahaca co-founder Thomasina Miers also backed Burnham’s stance, saying he understood the sector through his work in Greater Manchester, which has developed one of the UK’s most prominent restaurant and nightlife economies.

Tommy Banks, chef-owner of the Black Swan at Oldstead and Roots in York, said the industry was at “crisis point” and needed VAT rates brought closer to those seen in parts of Europe.

The campaign argues that UK hospitality is taxed more heavily than many European markets, where reduced VAT rates are common across restaurants, bars and hotels. Supporters say lowering the rate would give operators breathing space after years of cost increases and fragile consumer spending.

For grocery and foodservice suppliers, the debate is also likely to be closely watched. A sustained wave of closures across pubs, cafés and restaurants would have knock-on consequences across wholesale, fresh produce, meat, dairy, bakery and drinks supply chains.

The Treasury has so far resisted calls for a sector-specific VAT cut, but the campaign has put hospitality taxation firmly back on the political agenda as Labour faces growing internal debate over support for small businesses and the future of the high street.

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Chefs back Burnham VAT pledge as hospitality pressure mounts

Leading chefs and restaurateurs have welcomed Andy Burnham’s call for a cut in VAT for hospitality, as pressure grows on the government to provide greater support for pubs, restaurants, cafés and foodservice operators.

The Greater Manchester mayor, who has been selected as Labour’s candidate in the Makerfield byelection, has backed industry calls for VAT on hospitality to be cut from 20 per cent to 10 per cent. His position comes as the Tom Kerridge-led “VAT’s the problem” campaign gathers momentum across the sector.

Kerridge, whose hospitality portfolio includes Michelin-starred pubs, said Burnham had shown a strong understanding of the role restaurants, pubs and nightlife play in local economies.

He said the sector had reached “full breaking point” after being hit by rising business rates, employer national insurance, wage costs, energy bills and food inflation.

Kerridge also criticised Reform UK leader Nigel Farage’s pledge to cut hospitality VAT to 10 per cent, arguing that Farage’s plan to help fund the move by reinstating the two-child benefit cap was not something he could support.

Burnham has made hospitality and high street support a central part of his return-to-Westminster pitch. In recent days, he has also pledged to cut business rates for pubs, clubs and music venues by 20 per cent, while raising thresholds for small businesses including cafés, shops and leisure operators.

Sacha Lord, Burnham’s former night-time economy adviser in Greater Manchester, said a VAT reduction remained the “one single mechanism” that could protect hospitality jobs and businesses.

Wahaca co-founder Thomasina Miers also backed Burnham’s stance, saying he understood the sector through his work in Greater Manchester, which has developed one of the UK’s most prominent restaurant and nightlife economies.

Tommy Banks, chef-owner of the Black Swan at Oldstead and Roots in York, said the industry was at “crisis point” and needed VAT rates brought closer to those seen in parts of Europe.

The campaign argues that UK hospitality is taxed more heavily than many European markets, where reduced VAT rates are common across restaurants, bars and hotels. Supporters say lowering the rate would give operators breathing space after years of cost increases and fragile consumer spending.

For grocery and foodservice suppliers, the debate is also likely to be closely watched. A sustained wave of closures across pubs, cafés and restaurants would have knock-on consequences across wholesale, fresh produce, meat, dairy, bakery and drinks supply chains.

The Treasury has so far resisted calls for a sector-specific VAT cut, but the campaign has put hospitality taxation firmly back on the political agenda as Labour faces growing internal debate over support for small businesses and the future of the high street.

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