More than 200 hospitality CEOs sign letter urging Chancellor to maintain 12.5% VAT permanently

Tuesday, October 26, 2021

Industry leaders support UKBA's # VATsEnough campaign

Bosses from Britain's leading pubs, bars, restaurants, cafes, hotels, theme parks, Nightclubs, Leisure facilities and visitor attractions have signed a letter to the Chancellor released on Wednesday ahead of his Budget.

The letter highlights the advantages for the industry of a sustained VAT rate of 12.5%, which are:

UKHealthcare chief executive Kate Nicholls said: "Under current plans, VAT returns to its pre-pandemic level of 20% next April, meaning higher prices for consumers just at the time when they can least afford it. For businesses it will undoubtedly set off an inflationary spiral which will undermine wage growth, hit demand and ultimately threaten jobs.