A CHEF is calling for urgent action and a cut in VAT to help hospitality businesses stay afloat amid turbulent times for the industry.
Andy Link, chef and patron of The Riverside Inn in Aymestrey, has echoed calls made by acclaimed chef Tom Kerridge, who has highlighted that nearly a quarter of hospitality businesses in the UK are currently losing money.
"Some businesses, despite being busy, cannot make any headway due to the barrage of costs that keep on coming," he said.
"Increased labour costs, increased business rates, rising food, and utility costs.
"The pressure is relentless."
Mr Kerridge recently highlighted that almost two pubs a day are closing and believes a reduction in VAT could offer vital relief.
Mr Link agrees that a VAT cut could also make dining out more affordable for families adding that with pubs continuing to close, the situation is serious and needs to be addressed as a matter of urgency.”
He said: "A drop in VAT would certainly help lighten the load and bring us in line with European countries, who are not facing the crisis currently racking the UK.
"VAT on the hospitality industry is essentially a tax on enjoying eating out."
Across Europe, many countries set lower VAT rates for hospitality than for other goods and services.
Germany charges seven per cent, Ireland 13.5 per cent, and both Spain and Italy 10 per cent
Mr Link also stressed the broader value of the hospitality sector beyond business alone.
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He said: "Pubs and other hospitality businesses provide a social benefit to their communities and are also essential for providing employment in rural areas, and for creating opportunities and a career stepping stone for young people.
"I started out at the Riverside washing pots, I’m now chef/patron.
"But without places like the Riverside, I wonder where I would be now."
He believes aligning the UK’s hospitality VAT rate with European standards could mean the difference between survival and closure for many businesses.
He said: "A less punitive VAT rate, more in line with most European countries, would provide a significant boost to the finances of many establishments and could provide the fine line between staying afloat or going under."
A spokesperson for the Treasury said: "We have the right economic plan - we're backing hospitality by cutting VAT on family attractions and kids meals this summer, reforming business rates, with a £4.3bn support package to limit bills rises, capping corporation tax at 25 per cent, cutting red tape and taking action on the cost of living to boost the sector."
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