Election Fallout: Labour Big Defeats as Hospitality's Tipping Point Vote Backfires on Budget

We have woken up yesterday with massive changes across the country. Public frustration and pressures on each household have reflected in our votes. It is clear now more than ever that the Labour vision for a better Britain is not shared by the wide population. Previously hailed measures like increases in minimum wages, have just showed people are still worse off and the impact forecasted is yet to be felt by the average citizen.

One particular industry has been hit harder than ever over past year, the hospitality industry. We have seen increases in wages, business rates, national insurance contributions, cost of goods, energy and a tourism tax on the horizon.

Instead of the glorious future the government and last budget has promised we have seen closures across the industry, downsizing, redundancies and freezes on new hiring, being felt exactly the group that was meant to be better off through the budget.

And this, yesterday, has shown in the votes. ' The industry is at a tipping point and now more than ever is becoming more and more vocal' says Ramona Obafemi Chair of Hospitality Together. 'We have seen business owners encouraging people to vote, encouraging their teams to vote. They know that now, more than ever a vote will have to bring change. And change is very much needed in an industry squeezed from every angle.'

Hospitality Together has been advocating for a reduced VAT rate for hospitality industry to 10% under VAT10NOW campaign.

' Our industry has always been disadvantaged when it comes to taxation. Your neighbourhood cafe, restaurant, pub, takeaway, is unable to claim back VAT on most of their menu items. They have to pass this tax to their customer or absorb it themselves. We are now at a point, with all increases in everything, where we are on the brink of outpacing ourselves out. Many businesses owners are already trading at a loss, or working without paying themselves a salary. This should not be Britain of 2026' says Ramona.

A reduction in VAT would not only mean an immediate relief on all those business owners but also a long term sustainable future for the industry.

The two major parties, conservatives and labour are saying lessons have been learned while labour declaring they will still be able to turn things around. The winning parties are celebrating but time will tell if their pledges to the industry will mean decisive actions.

'While the message has been clear, we hope the government understand now more than ever the need for change in the industry. And it all starts with VAT' says Ramona