Celebrity chefs Tom Kerridge and Heston Blumenthal join VAT plea to government

Celebrity chefs Tom Kerridge and Heston Blumenthal join VAT plea to government Open letter to Andy Burnham warns if VAT for hospitality isn't cut "closures will only continue to accelerate, jobs will continue to be lost and opportunities for young people reduced" Celebrity chefs Heston Blumenthal and Tom Kerridge have joined more than 800 hospitality businesses in calling on the government to slash the VAT rate paid by the industry. Others backing the drive include Andi Oliver and Angela Hartnett, along with a host of businesses, from brewers Fuller’s and Greene King, pub chains such as Wetherspoon’s, to restaurant chains Franco Manca, Pizza Express, and Wagamama They have come together as part of the #VATsTheProblem campaign to write an open letter to Prime Minister Andy Burnham, urging him to halve the rate of VAT for hospitality to 10%. While there are many big names, most of the signatories are small and medium-sized businesses. The open letter highlights comments by Mr Burnham, then Mayor of Greater Manchester, in February, where he said he would argue for a hospitality VAT rate in line with Europe. It comes as Chancellor John Healey prepares for his first Budget at the end of October. The letter says: “It’s time for a fairer tax burden for hospitality. Without action, closures will only continue to accelerate, jobs will continue to be lost and opportunities for young people reduced. “More than 370,000 people have signed the #VATsTheProblem petition calling for a 10% rate of VAT for hospitality, bringing the UK in line with the European average. “We trust we can count on your support, following your comments in February this year that you would “argue for a VAT rate more consistent with what you find in Europe because of the social value that your businesses bring to places and towns”. “A lower rate of VAT for hospitality can turn closures into openings, lost jobs into new jobs, and boarded up high streets into thriving centres of community. “Alongside your policy to reform business rates for the high street, we urge you to bring forward your plans to deliver a lower rate of VAT for hospitality.” Tom Kerridge said: “It’s clear that the Prime Minister understands the importance of hospitality, and I was really encouraged to hear him make the case earlier this year for a lower rate of VAT for our sector. “The reality is that 20% VAT is holding hospitality back. Hospitality is different from many other businesses because so much of what we spend our money on is our teams. You can reclaim VAT on a product, but you can’t reclaim VAT on a person. That makes a 20% rate particularly tough for a sector where labour is one of our biggest costs. “And this is all happening at a time when businesses are already dealing with rising wages, energy bills, food costs and business rates. We’re seeing the consequences, with businesses closing their doors every single week. “That’s why hospitality businesses across the country have come together with one simple ask of the Prime Minister: deliver on your pledge and bring hospitality VAT down to 10%, in line with our European neighbours. We don’t need another promise. We need action.”