Back to Blog
29 March 2026Alan

What a 10% VAT Rate Could Mean for Hospitality

During the COVID-19 pandemic, the temporary VAT reduction to 5% provided a lifeline for hospitality businesses. It proved that lower tax rates can help the sector survive and even thrive.

Hospitality Together is advocating for a permanent reduction to 10%. Here's what that could mean:

✅ Protect Jobs: Preserving meaningful employment for over 3.5 million workers.

✅ Keep Businesses Open: Giving independent venues the breathing room they need to survive.

✅ Support High Streets: Maintaining vibrant local economies that benefit everyone.

✅ Boost Consumer Confidence: Lower prices encourage more people to eat out.

✅ Strengthen the Economy: A thriving hospitality sector increases spending across the board.

The evidence is clear—a reduced VAT rate works. It's time for the government to make it permanent.