hunter roberts horizontal logo

Why reducing the VAT on hospitality businesses is a wise move

Throughout the COVID-19 pandemic, businesses of all kinds, especially the hospitality industry, have been hit incredibly hard. VAT reductions from 9% to 13% and then back up to 20% have been further salt in the wound for these already struggling businesses. To support these establishments, a petition with over 12,000 signatures has been submitted to Jeremy Hunt, Chancellor of the Exchequer, requesting a reduction in VAT down to 10% for the hospitality businesses. Every signature counts towards making a real difference. There is a real risk to the industry if this reduction isn’t introduced.

Boosting economic activity: Reducing VAT rates on hospitality businesses will stimulate demand for eating out and drinking, which will boost economic activity overall. When customers have more disposable income, they tend to spend more, thus supporting small restaurants and bars. This not only creates jobs in the industry, but it also generates revenue for the government in the form of VAT, albeit at a lower rate. Moreover, it is good news for the economy, as the hospitality industry plays a significant role in creating jobs in the UK.

Promoting tourism: A reduction in VAT rates on hospitality businesses will make the UK a more attractive destination for visitors, thus promoting tourism. The UK is renowned for its vibrant hospitality industry, and by reducing VAT rates, the country will be able to attract more visitors. By doing so, the industry will not only benefit from an increase in customers, but the local economy and communities will benefit from a boost in tourism revenue. As a result, there will be an increase in job opportunities for those working in the hospitality industry.

Supporting small businesses: Small businesses are at the heart of the hospitality industry in the UK, and reducing VAT rates will help these businesses. Small businesses have been struggling due to the pandemic, and every little bit helps. By cutting the VAT rate, customers will be more inclined to support their local favourites. Additionally, with more disposable income, small hospitality businesses will have the ability to invest in new equipment, products, and services that will improve and enhance their experience as customers.

Encouraging social gatherings: With the pandemic and social distancing, people have been reluctant to go out and socialize in public places. However, with a lower VAT rate, the cost barrier for customers is reduced, and this will encourage people to socialize more in public spaces like pubs and bars. Additionally, social gatherings can have a positive impact on mental health, reduce loneliness, and contribute to stronger community bonds.

Benefits beyond the pandemic: Finally, it’s worth noting that reducing VAT rates on hospitality businesses will have benefits beyond the pandemic. The hospitality sector has long been a fundamental component of the UK economy, and the long-term benefits of reducing VAT rates will be significant. By reducing the VAT rate for hospitality businesses, it will demonstrate that the government is committed to supporting the small business sector, as well as promoting the UK’s reputation as a hub of tourism and hospitality.


Reducing VAT rates from 20% to 10% for hospitality businesses is a wise move. It will benefit the economy, tourism, and most importantly, the small businesses in the hospitality industry that have been struggling due to the pandemic. Not only will it have an impact on the industry, but it will have positive impacts on mental health and community bonding. This move will not only benefit the industry in the short-term but will lay a foundation for long-term growth and stability in the industry. It’s time for the UK government to consider this proposal and support the hospitality sector.

To support the reduction on VAT for hospitality businesses, click here to sign the petition.