Hundreds of Britain's top pubs, hotels and restaurants call for Andy Burnham to cut hospitality VAT in move that could save thousands of jobs

More than 800 of Britain's leading pubs, hotels and restaurants have urged Prime Minister Andy Burnham to slash hospitality VAT from 20 per cent to 10 per cent warning that businesses are closing and jobs are being lost under the current tax burden.

The campaign comes as Mr Burnham prepares to welcome business leaders to Downing Street today as he seeks to present his Government as a 'partner for growth' and encourage investment and entrepreneurship.

Among those backing the VAT cut are celebrity chefs Heston Blumenthal and Tom Kerridge, as well as household names including Bill's, Franco Manca, PizzaExpress and Wagamama.

Major pub and brewing groups including Fuller's, Greene King, Robinsons Brewery and Wetherspoon's have also signed the letter, alongside hospitality and leisure giants such as Center Parcs, Haven and Marriott International.

The businesses are demanding that the Prime Minister set out exactly how and when he intends to deliver on his previous support for a lower rate of VAT.

Mr Burnham backed cutting the rate from 20 per cent to 10 per cent earlier this year, arguing it would bring Britain more closely into line with European competitors.

But since becoming Prime Minister, his focus has largely shifted towards business rates, including a pledge to cut rates for pubs and music venues by 20 per cent.

The VAT campaigners say that is not enough.

More than 800 of Britain's leading pubs, hotels and restaurants have urged Prime Minister Andy Burnham to slash hospitality VAT from 20 per cent to 10 per cent (stock)

The campaign comes as Mr Burnham prepares to welcome business leaders to Downing Street today

The letter, organised as part of the #VATsTheProblem campaign, warns: 'It's time for a fairer tax burden for hospitality. Without action, closures will only continue to accelerate, jobs will continue to be lost and opportunities for young people reduced.'

It adds: 'More than 370,000 people have signed the #VATsTheProblem petition calling for a 10% rate of VAT for hospitality, bringing the UK in line with the European average.'

The signatories say a lower rate could help reverse the fortunes of struggling high streets, arguing: 'A lower rate of VAT for hospitality can turn closures into openings, lost jobs into new jobs, and boarded up high streets into thriving centres of community.'

They conclude: 'Alongside your policy to reform business rates for the high street, we urge you to bring forward your plans to deliver a lower rate of VAT for hospitality.'

The intervention comes as Mr Burnham hosts a series of events at No 10 aimed at demonstrating his commitment to working with businesses to drive economic growth.

The Prime Minister is expected to meet entrepreneurs and business leaders as he seeks to position his administration as a stable partner for investment.

His wider high-street agenda has included proposals to give councils new powers over vape and betting shops, alongside measures aimed at reducing the burden of business rates on pubs.

But hospitality bosses say VAT remains one of the biggest obstacles facing the sector.

A survey published by UKHospitality earlier this year found 16 per cent of hospitality businesses – around one in six – believed they were at risk of failure within 12 months, while almost a quarter were operating at a loss. 

Some 89 per cent said a VAT cut would be the most impactful measure to support them.

TV chef Tom Kerridge, who is among the campaign's most prominent supporters, said: 'It's clear that the Prime Minister understands the importance of hospitality'

UKHospitality has also warned that nearly 100,000 hospitality jobs have disappeared over the past two years, with young people and part-time workers particularly affected. 

And official Treasury figures show that cutting VAT on accommodation and food and drink services from 20 per cent to 10 per cent would cost the Exchequer an estimated £10.5billion in 2026/27. 

The current 20 per cent rate is the standard VAT rate for restaurant, café and pub food and non-alcoholic drinks consumed on the premises.

TV chef Tom Kerridge, who is among the campaign's most prominent supporters, said: 'It's clear that the Prime Minister understands the importance of hospitality, and I was really encouraged to hear him make the case earlier this year for a lower rate of VAT for our sector.

'The reality is that 20 per cent VAT is holding hospitality back. Hospitality is different from many other businesses because so much of what we spend our money on is our teams.

'You can reclaim VAT on a product, but you can't reclaim VAT on a person. That makes a 20 per cent rate particularly tough for a sector where labour is one of our biggest costs.'

He added: 'And this is all happening at a time when businesses are already dealing with rising wages, energy bills, food costs and business rates.

'We're seeing the consequences, with businesses closing their doors every single week.'

Mr Kerridge said the industry was now united behind a straightforward demand: 'That's why hospitality businesses across the country have come together with one simple ask of the Prime Minister: deliver on your pledge and bring hospitality VAT down to 10 per cent, in line with our European neighbours.

'We don't need another promise. We need action.'

The campaign is supported by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Code Hospitality.

The pressure comes as the Government has already introduced a temporary VAT cut to five per cent on eligible children's meals, family leisure tickets and summer attractions, which ran from June 25 to September 1.