Petition Reduce VAT for hospitality from 20% to 13% permanently
Reduce the standard rate of VAT applied to hospitality businesses (including restaurants, cafés, pubs and accommodation) from 20% to 13% on a permanent basis, to reflect the sector’s cost structure and to support business viability following recent fiscal changes.
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The Autumn Budget increased cost pressures on hospitality through higher employer National Insurance contributions and changes to business rates relief. The removal of the Covid-era 40% rates discount, combined with revaluations, has in our view materially increased fixed costs. A targeted VAT reduction could directly improve cash flow, protect employment, and reduce closures across high streets, including businesses excluded from current pub-only reliefs.
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