TV chefs Simon Rimmer and Simon Wood and Greater Manchester Night Time Economy Advisor Sacha Lord are leading calls from a host of Manchester chefs and operators for the government to drop VAT to 10% for the hospitality sector.
Greens owner and Sunday Brunch presenter Rimmer, Masterchef star and restaurateur Wood and Parklife co-creator Lord join the likes of the Great British Menu and Eat Well MCR’s Mary-Ellen McTague, Sam Grainger from Madre and Belzan, and Michael Clay of Elnecot in voicing concern for the sector in the face of universally rising costs, from inflated energy to unrelenting rises in raw material costs.
The group make their point in a new video which is widely available across social media:
Rimmer, whose pioneering vegetarian restaurant Greens in Didsbury closed at the beginning of the year after 33 years, highlighted the current pressures facing the industry: “I think this is an emergency for hospitality. Brexit meant a lot of floating labour left the industry, heat, light and power, raw ingredients, cost of employing people, increase in rent and rates… in the 33 years that I’ve owned [Greens], this is the biggest crisis I have ever seen.”
Meanwhile, Wood previously took to social media at New Year to call for a drop in VAT:
2024 has already seen a host of high profile closures across the industry.
The government temporarily reduced VAT to 12.5% between October 1, 2021 and March 31, 2022, as part of their assistance to the hospitality industry during the pandemic.
The current standard rate of VAT is now back to 20% and the UK has one of the highest VAT rates in the world. The USA has no VAT just local sales taxes of 2 – 7%, Canada and UAE have a 5% rate, France is 5.5% and much of Europe no more than 10%, Japan and South Korea is 10%, and New Zealand 15%.
A reduction of the VAT rate to 10% is being backed not only by chefs and operators in Manchester, but also by the trade body UK Hospitality, which is backed by over 100,000 hospitality venues nationwide.
Lord said: “It’s simple. Reducing VAT will undoubtedly save businesses and save jobs. We’ve already seen quite a few big closures at the start of this year. We’ll see a lot more in the coming weeks. That’s guaranteed, and something needs to be done. By stepping in and reducing VAT, that’s the single mechanism that can save the industry.”
UK Hospitality is urging people to contact their MPs to urge them to support a lower rate of VAT for hospitality, tourism and leisure. It also backs the petition at Change.org created by Bournemouth-based hospitality owner Andy Lennox.
Sophia Crilly, business development director at Manchester’s Finest Group, which has produced the video, added: “Manchester’s Finest has been working closely with the hospitality sector, championing independent bars, pubs, cafes and restaurants across Greater Manchester for over a decade. On the ground, we hear about the challenges direct from business owners and our team wanted to find a way to support the sector locally and nationally.
“With a platform of almost 3m social followers, we hope engaging our audience can play a part in effecting real change to support the industry and are proud to lead a campaign calling for 10% VAT now.”
