Hospitality chief says VAT reduction is highly likely in near term
Simpson spoke at a press briefing held at the Blue Boar pub in Westminster on Tuesday 20 October. He said he was confident hospitality would eventually secure a VAT reduction, though it may not be included in the Budget set to be announced next week. He described a VAT cut as the single biggest lever the Government could pull and said that, in the near term, it is highly likely. He noted the relief would address some of the sector’s damage and pointed to a planned business rates cut due to take effect in April 2027 as part of the approach. The Government has said it will not deliver everything immediately but intends to start making changes over time. With backing for the #VATsTheProblem campaign, led by UK Hospitality and Tom Kerridge, growing, Simpson suggested the Conservatives could eventually back a VAT cut. The campaign had surpassed 400,000 signatures at the time of publication. For a less disappointing Budget, he argued a material tax cut and action on business rates were essential. He noted the sector has been hammered in recent years to protect others and warned that job losses and higher wages could accelerate if the Budget fails to deliver targeted support and consumer spending slows. The Government has made MPs aware of the sector's challenges, and hospitality remains hopeful as the golden quarter approaches, with a red line on hotel business rates. Source: The Morning Advertiser
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