Across the UK, hospitality businesses are coming together behind a campaign with a simple message: VAT’s The Problem.

Launched in July 2026, the campaign is calling on the Government to reduce VAT for hospitality businesses from 20% to 10%.

The movement has gained support from operators, chefs, suppliers, hotels, pubs, restaurants, cafés, bars and industry leaders who believe the current VAT rate places an unnecessary burden on a sector that plays a vital role in communities throughout the country.

But what exactly is the campaign, why is it happening now, and what could it mean if successful?

 

What Is VAT?

VAT, or Value Added Tax, is a tax added to most goods and services sold in the UK.

In hospitality, VAT applies to many everyday purchases, including:

  • Meals in restaurants
  • Food and drink in pubs and cafés
  • Hotel stays
  • Hospitality experiences and events

The standard UK VAT rate is currently 20%.

According to the campaign, this is one of the highest hospitality VAT rates in Europe. Many countries with strong hospitality and tourism sectors operate significantly lower rates, including France, Italy and Spain at 10%, while Germany has reduced rates as low as 7% for parts of the sector.

 

 

Why Has The Campaign Been Created?

The campaign has been created in response to the increasing pressures facing hospitality businesses.

Supporters point to a combination of challenges, including:

  • Rising energy costs
  • Food inflation
  • Increasing employment costs
  • Business rates
  • A growing overall tax burden

The campaign argues that, when combined with a 20% VAT rate, these pressures make it increasingly difficult for hospitality businesses to invest, grow and, in some cases, remain viable.

Rather than seeking short-term support, the campaign is calling for a permanent structural change through a reduced VAT rate.

Its central message is: 10% VAT is fair for hospitality.

 

Who Is Behind The Campaign?

The campaign is being spearheaded by chef and restaurateur Tom Kerridge, alongside hospitality businesses and supporters from across the UK.

However, organisers are keen to stress that this is not simply a campaign for business owners.

The movement represents a much wider hospitality community, including:

  • Chefs
  • Waiting staff
  • Bar teams
  • Kitchen Porters
  • Hotel employees
  • Farmers
  • Brewers
  • Suppliers
  • Producers

The campaign argues that hospitality’s success benefits a large network of people and businesses beyond the venues themselves.

 

What Would A 10% VAT Rate Mean?

Supporters believe a reduced VAT rate could have a significant impact across the hospitality sector.

According to the campaign, a 10% VAT rate would help:

Support Hospitality Businesses

Lower VAT would reduce some of the financial pressure currently facing pubs, restaurants, cafés, hotels, bars, festivals and other hospitality businesses.

Protect Local Communities

Hospitality venues are often at the heart of local communities.

The campaign argues that when venues close, communities lose much more than places to eat and drink. They lose meeting places, local identity, employment opportunities and social connections.

Strengthen High Streets

Supporters believe a healthier hospitality sector contributes to more vibrant town centres and high streets, helping attract visitors and support wider local economies.

Support Employment

The campaign highlights concerns around job losses within the sector and argues that a more sustainable operating environment could help protect existing jobs and support future employment growth.

Improve Consumer Value

Campaign supporters also believe a stronger hospitality sector would be better positioned to continue offering quality experiences and value to consumers.

 

Why This Matters Beyond Hospitality

One of the key messages behind VAT’s The Problem is that hospitality affects far more people than those who work directly within it.

Restaurants, pubs, hotels and cafés support tourism, local suppliers, producers, transport providers and high streets across the country.

The campaign therefore, positions VAT reform not only as a hospitality issue, but as an economic and community issue as well.

 

How Can You Support The Campaign?

The campaign is encouraging both hospitality professionals and members of the public to get involved.

Supporters can:

  • Sign the petition
  • Share the campaign across social media
  • Raise awareness within their local communities
  • Encourage colleagues, friends and family to learn more about the issue

The campaign’s goal is to demonstrate broad support for a reduced hospitality VAT rate and encourage Government consideration of the proposal.

 

Sign the Petition

The official campaign website can be found here: VAT’s The Problem Campaign

You can learn more about the campaign and sign the petition directly through the website.

 

Looking Ahead

Whether or not VAT changes in the future remains a matter for the Government.

What is clear is that VAT’s The Problem has brought together a wide range of voices from across hospitality around a shared objective.

The campaign is focused on one central belief: That reducing hospitality VAT from 20% to 10% would provide meaningful support to one of the UK’s most important industries.

As the conversation continues, it is likely to remain one of the most significant industry campaigns of 2026.