A coalition of more than 800 hospitality industry businesses has launched a campaign calling on Prime Minister Andy Burnham to deliver on his previous commitment to reduce VAT for the sector. The #VATsTheProblem campaign includes major pub and restaurant groups such as Fuller’s, Greene King, Mitchell’s & Butlers, Wetherspoons, Franco Manca, Pizza Express and Wagamama, along with hotel chains including Best Western Hotels and Marriott International. However, the signatories are predominantly small and medium-sized independent establishments. The campaign has garnered support from prominent chefs including Angela Hartnett, Heston Blumenthal, Andi Oliver, Clare Smyth, Jason Atherton, Nathan Outlaw, Paul Ainsworth and Tom Kerridge.
The open letter warns that without action to address the tax burden, the sector will face continued closures, job losses, and reduced opportunities for young people entering the industry. The campaign is pushing for a VAT rate aligned with European standards at 10 percent, compared to the current 20 percent rate in the UK. A related petition has already gathered more than 370,000 signatures in support of the lower rate.
Burnham previously stated his support for a hospitality VAT reduction in February while serving as mayor of Greater Manchester, citing the social value that hospitality businesses bring to communities. The current campaign comes after the prime minister announced a 20 percent cut to business rates for pubs, clubs and live music venues in his first week in office, part of a £100 million aid package. However, industry representatives have called for additional measures beyond the rates relief already implemented.
Separately, the government indicated it would work with publicans to improve conditions for pub tenants through changes to lease agreements and product pricing. A review into the 2016 pubs code revealed that fewer than 400 tenants pursued free-of-tie agreements between April 2022 and March 2025, with applicants reportedly discouraged by the associated costs and administrative complexity. The government is considering additional reforms to enable longer-term agreements between pub companies and tenants.
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