What's happened
A campaign calls for reducing hospitality VAT from 20% to 10%, urging Prime Minister Andy Burnham to back the plan. Signatories include chefs Heston Blumenthal and Tom Kerridge and chains like Wagamama and Pizza Express. The letter argues a lower rate will prevent closures, protect jobs and boost high streets.
What's behind the headline?
Analysis
- The campaign leverages high-profile names to frame VAT relief as a catalyst for regional revival.
- It frames the issue as structural, tying VAT to employment and urban vitality.
- The push intersects with broader fiscal and growth agendas, potentially influencing Budget deliberations.
- Readers should watch for official responses from Downing Street and any parliamentary movements on VAT policy.
How we got here
The VATsTheProblem campaign has gathered business leaders to press for a 10% hospitality VAT rate, aligning with European averages. The bid follows Burnham’s public support in February and a broader push to revive high streets and reform business rates.
Our analysis
Independent reports and The Mirror both summarize the open letter to Prime Minister Andy Burnham and cite signatories across hospitality. The Independent notes the letter’s call to align VAT with Europe and cites Heston Blumenthal and Tom Kerridge; The Mirror highlights the same signatories and references future Budget timing by Chancellor Healey.
Go deeper
- Will Burnham respond publicly to the letter this week?
- What impact would a 10% VAT have on small venues versus large chains?
- When might any policy shift be announced or implemented?
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Greene King - British brewery and pub retailer
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Franco Manca - Pizzeria
Franco Manca is a sourdough Neapolitan pizza business operating around 55 pizzeria in the UK and Italy. It was founded in 2008 by Giuseppe Mascoli and Bridget Hugo. The first store opened on Market Row in Brixton Market.
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Wagamama - Restaurant company
Wagamama is a British restaurant chain, serving Asian food based on Japanese cuisine.
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Tom Kerridge - Chef
Thomas Kerridge is an English Michelin-starred chef who has worked mainly in the United Kingdom. After initially appearing in several small television parts as a child actor, he decided to attend culinary school at the age of 18.
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Heston Blumenthal - British chef
Heston Marc Blumenthal OBE HonFRSC is a British celebrity chef. Blumenthal is regarded as a pioneer of multi-sensory cooking, food pairing and flavour encapsulation.
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Andy Burnham - Mayor of Greater Manchester
Andrew Murray Burnham is a British Labour Party politician who has served as Mayor of Greater Manchester since 2017. He attended Gordon Brown’s Cabinet as Chief Secretary to the Treasury from 2007 to 2008 and served in the Cabinet as Culture Secretary f
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Marriott International - Hospitality company
Marriott International, Inc. is an American multinational diversified hospitality company that manages and franchises a broad portfolio of hotels and related lodging facilities. Founded by J.
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Center Parcs - Company
Center Parcs Europe is a European network of holiday villages that was founded in the Netherlands in 1968, and is currently operated by Pierre & Vacances and owned by Blackstone Group.
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British Institute of Innkeeping - Organization
The British Institute of Innkeeping is the professional body for individuals working in the licensed retail industry in the UK.