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Burnham told to deliver 10 per cent hospitality VAT after backing tax cut
More than 800 businesses say a lower rate would protect jobs and help prevent closures as the sector faces rising costs.
On Monday, more than 800 hospitality businesses wrote to Prime Minister Andy Burnham urging him to introduce a lower VAT rate, as he gathered business leaders at Downing Street to pledge backing for entrepreneurs.
The #VATsTheProblem campaign seeks to reduce the current 20% VAT rate to 10%, pressuring Burnham to deliver on his public support for the sector expressed earlier this year.
Celebrity chef Tom Kerridge said, "20% VAT is holding hospitality back," while more than 370,000 people signed a petition supporting the cut, with signatories including Fuller's, Greene King, and Wagamama.
UKHospitality noted the "vast majority of the signatories are small and medium-sized businesses," warning that without tax relief, closures and job losses may accelerate.
Burnham has prioritized reviving high streets by granting councils powers to block betting shops and cutting business rates, positioning these moves within the Government's broader "partner for growth" agenda.