The roundtable brought together leading voices from across the industry, including Sacha Lord FIH, Matt Tebbutt and Thomasina Miers, alongside hospitality leaders from Kent, London, Manchester and Liverpool.
The roundtable concluded with a clear consensus that reducing VAT on hospitality is the single most important step the Government can take to provide immediate relief for struggling hospitality businesses. This position is supported by the cross-industry campaign launched by Chef Tom Kerridge, #VATsTheProblem, which is calling for hospitality VAT to be reduced from 20% to 10%.
The issue was subsequently raised during Prime Minister’s Questions on 3 June, when Rosie Duffield MP, Member of Parliament for Canterbury, asked the Prime Minister whether he would commit to cutting VAT on hospitality, bringing the UK more closely into line with its European neighbours and provide immediate relief for struggling hospitality businesses.
The combined impact of higher business rates, increased National Insurance contributions, rising wage costs and the 20% VAT rate has created a perfect storm for hospitality businesses. Research from UKHospitality shows that three hospitality businesses have closed every day since the start of 2026. Hospitality businesses are delaying investment, shelving expansion plans and reducing staffing levels simply to survive.
A central theme of the discussion was that hospitality is too often viewed as a luxury sector, rather than a vital part of Britain’s social and economic fabric. Attendees highlighted the industry’s important role in creating jobs, training young people, supporting working families, strengthening communities and keeping high streets alive.
Support for VAT reduction for hospitality is growing across the political spectrum. In February 2026, Andy Burnham, Manchester Mayor and the Labour candidate for the Makerfield by-election, backed calls for a VAT cut.
Rosie raised this with the Prime Minister in her question: “The UK’s rate of 20% VAT in hospitality is killing businesses daily. Does the Prime Minister agree that that’s the problem, and will he match his candidate in Makerfield’s commitment to slash VAT in line with the rest of the EU?”
Rosie Duffield MP said: “At the roundtable held in Parliament on 2 June, hospitality leaders from across the country, including Andy Burnham’s Night Time Economy Adviser Sacha Lord FIH, were clear that the UK’s 20% VAT rate is putting businesses under intolerable pressure. The sector needs action, not just recognition. I was disappointed that the Prime Minister would not commit to considering a reduction in hospitality VAT, but I will continue making the case until Ministers recognise the scale of the crisis facing one of our most important industries.”
Robert Richardson FIH MI, Chief Executive of the Institute of Hospitality, said: “Our vital hospitality sector is currently facing the highest levels of taxation in its history, and when businesses are under sustained financial pressure, investment in people is always the first area to suffer. Recruitment, professional development, and pathways into meaningful careers are now at risk. We are already seeing the consequences reflected in national employment figures, particularly among those seeking their first opportunity in the workplace. When the cost of doing business continues to rise, the ability of employers to invest in recruitment, training and career development is inevitably reduced. I am grateful to Rosie Duffield MP for bringing together hospitality operators, industry leaders and parliamentarians in Parliament to discuss the case for aligning hospitality VAT with our European counterparts. A more competitive VAT rate would not simply support businesses; it would help unlock investment in people, skills and jobs, delivering significant economic and social benefits for communities across the United Kingdom.”
Sacha Lord FIH, Chair of the Nighttime Industries Association, said: “After attending the round table organised by Rosie Duffield, it became very clear to me that operators in the room were in an extremely desperate situation. In thirty years of being in this sector, I have never known it to be so bad, and that includes the COVID period. Everyone in the room agreed that the only major lever left to save the industry, the UK’s third largest employer, is a reduction in VAT.”
Allen Simpson, Chief Executive of UKHospitality, said: “Thank you to Rosie Duffield MP for bringing together MPs and leading hospitality bodies to discuss the pressures facing our sector. It’s clear that VAT’s the problem. A 10% VAT rate is fair for hospitality and would bring us in line with the rest of Europe. I’m pleased to see growing support in Parliament for this change, which would be the single most impactful lever the Government can pull to support hospitality, jobs and our high streets.”
Morgan Schondelmeier, Head of Policy at the British Beer and Pub Association, said: “This was a valuable opportunity for pubs and hospitality businesses to highlight the challenges facing the sector, but, as importantly, the opportunities we bring for workers and communities. We are strongly aligned on the need to cut VAT to 10%, and welcomed the chance to discuss energy costs, wages and employment. The roundtable reinforced the importance of working together to engage with government and support the long-term success of our fantastic sector.”
To sign the petition #VATsTheProblem, please follow the link below.
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