VAT's the Problem

The correct title of this article is #VAT's The Problem. The substitution of the # is due to technical restrictions.
#VAT's The Problem
FormationJune 1, 2026; 4 months ago (2026-06-01)
Founder
Tom Kerridge
Websitehttps://www.vatstheproblem.co.uk/

#VAT's The Problem is a British campaign founded in by Tom Kerridge 2026 that aims to reduce the Value-added tax (VAT) for the hospitality sector from 20% from 10% by achieving 1,000,000 signatures on its petition to do so. It is supported by over 800 hospitality business in the UK.

Background

VAT was implemented in the UK from 1 April, 1973, with the hospitality industry being subject to the standard rate, which since January 2011 has been 20%, bar temporary reductions from May 2020 to March 2022 due to the COVID-19 pandemic. In February of 2026, Andy Burnham, then Mayor of Manchester, now Prime Minister, said he would argue for the hospitality VAT rate to be reduced to 10%.

History

Tom Kerridge, the founder of #VAT's The Problem, in 2020

On 1 June, 2026, #VAT's The Problem launched, encouraging people to sign an open letter to reduce the VAT on the hospitality sector to 10%, with the aim of reaching 1,000,000 signatures. Celebrity chef Tom Kerridge launched the campaign. The campaign was signed by over 100,000 people in its first three days. On 8 June, 2026, Alyn Smith lodged a motion in Scottish Parliament supporting the campaign. At PMQs on 11 July, 2026, Green MP Hannah Spencer asked then Prime Minister Keir Starmer if he would support the campaign, to which he refused, pointing to the Summer Savings Programme, which temporarily reduced VAT from 20% to 5% for children's menu food. The campaign has garnered support from over 800 hospitality venues, alongside celebrity chefs such as Heston Blumenthal and Nathan Outlaw.

Reception

Tax lawyer Dan Neidle, writing for The Times, called the proposed tax cut 'incredibly stupid,' arguing that the move would benefit large corporations far more than it would benefit small business, as 45% of hospitality business do not pay VAT.

Supporters

Chefs

Restaurants and food groups

References

  1. ↑ "VAT rate rises from 17.5% to 20%". BBC News. 2011-01-04. Retrieved 2026-09-19.
  2. ↑ "Introduction of a new reduced rate of VAT for hospitality, holiday accommodation and attractions". GOV.UK. Retrieved 2026-09-19.
  3. ↑ Titcomb, James; Haynes, Tom (September 14, 2026). "Hundreds of hotels, pubs, and restaurants urge Burnham to cut VAT". The Telegraph. Retrieved September 19, 2026.
  4. ↑ Ette, Sam (2026-06-01). "#VATsTheProblem: Tom Kerridge spearheading new campaign to cut VAT to 10%". UKHospitality. Retrieved 2026-09-19.
  5. 1 2 O'Sullivan, Isobel (2026-09-02). "Did the Summer Scheme Really Prove That #VATstheproblem?". Startups.co.uk. Retrieved 2026-09-19.
  6. ↑ "News". VAT's the problem. Retrieved 2026-09-19.
  7. ↑ "The Scottish Parliament". www.parliament.scot. Retrieved 2026-09-19.
  8. ↑ "Prime Minister Stops Short of Backing Hospitality VAT Reduction Campaign". 2026-06-11. Retrieved 2026-09-19.
  9. 1 2 3 4 5 6 7 8 9 "800 hospitality businesses urge Andy Burnham to cut VAT rate for hospitality". Boutique Hotelier. 2026-09-14. Retrieved 2026-09-19.
  10. ↑ Neidle, Dan. "This tax cut would be incredibly stupid". www.thetimes.com. Retrieved 2026-09-19.
  11. 1 2 3 4 Kollewe, Julia (2026-09-13). "Hospitality industry urges Andy Burnham to lay out VAT cut plans". The Guardian. ISSN 0261-3077. Retrieved 2026-09-19.
  12. ↑ "Home". J D Wetherspoon. Retrieved 2026-09-20.
  13. ↑ "Family Friendly Pub Restaurants Across the UK | Hungry Horse". www.hungryhorse.co.uk. Retrieved 2026-09-20.