In a bold show of support, top chefs are backing Andy Burnham for Prime Minister, urging a reduction in VAT for the beleaguered hospitality industry. With the Labour candidate currently contesting the Makerfield by-election, Burnham’s proposal to lower the tax from 20% to 10% aligns with European standards and aims to revitalise struggling businesses across the UK.
A Culinary Crisis
The hospitality sector is facing a critical juncture, with an alarming average of 21 venues shutting their doors each week. Rising operational costs—spurred by increased business rates, employer national insurance, and soaring energy prices—are pushing many establishments to the brink. Speaking out, renowned chef Tom Kerridge warned, “Hospitality is now at full breaking point. It has now been bled dry. It is one of the highest-taxed industries.”
Kerridge, whose culinary empire holds three Michelin stars, emphasised the importance of understanding the industry’s nuances. “We have a country that is being run by spreadsheets in the Treasury as opposed to operators,” he lamented. He believes Burnham’s experience as the Mayor of Manchester, a city renowned for its vibrant food culture, makes him a candidate who truly grasps the challenges facing hospitality.
Chefs Unite for Change
Kerridge is not alone in his support. A coalition of chefs has launched a campaign aptly named “VAT’s the Problem,” advocating for the proposed VAT cut, which they argue would provide much-needed relief to struggling hospitality businesses. Currently, countries like France, Spain, and Italy benefit from lower VAT rates of 10%, while Germany’s stands at just 7%. The disparity is stark, and many in the UK believe a reduction could help level the playing field.
Sacha Lord, an entrepreneur and close ally of Burnham, stated, “A VAT reduction is the one single mechanism that can save many hospitality businesses and jobs.” His sentiment is echoed by others in the industry, including Thomasina Miers, co-founder of the restaurant chain Wahaca. Miers highlighted Burnham’s deep understanding of the sector, suggesting he could effectively represent the interests of hospitality workers.
Political Landscape and Diverging Views
While Burnham’s stance has garnered widespread approval, not all political figures are on the same page. Reform UK leader Nigel Farage has also pledged to cut VAT on hospitality to 10%. However, Kerridge voiced his reservations regarding Farage’s plan to reinstate the two-child benefit cap as a funding source, arguing it would exacerbate poverty among children—a cause he staunchly opposes.
As the political landscape shifts, Burnham’s potential bid for leadership within the Labour Party is gaining traction. His commitment to the hospitality sector during the COVID-19 crisis has set him apart from other politicians, and many in the industry are hopeful that his leadership could usher in meaningful change.
A Sector in Need of Support
The call for a VAT reduction comes at a time when the hospitality industry is not just struggling; it’s undergoing a transformation. With the pandemic’s impact still reverberating, the sector is in dire need of support and understanding from policymakers. Chefs like Tommy Banks, who owns the Black Swan at Oldstead, have expressed relief at seeing someone in government advocate for their needs. “It feels like our industry is finally being heard,” he said, emphasising the urgency of aligning VAT rates with those of European counterparts.
As the by-election unfolds, the hope is that Burnham’s vision can translate into concrete policies that reinvigorate the hospitality landscape in the UK.
Why it Matters
The outcome of this campaign could have far-reaching implications for the UK’s hospitality industry, which has been under siege from rising costs and regulatory pressures. A successful VAT reduction could not only save businesses but also preserve jobs and sustain the cultural fabric of dining and entertainment across the nation. As the government grapples with economic recovery, the voices of chefs and restaurateurs may be pivotal in shaping a more supportive framework for one of the country’s most cherished sectors.
