Chefs and restaurateurs have said they hope Andy Burnham becomes prime minister after he backed calls to cut VAT tax for hospitality businesses.
Burnham, who is standing as the Labour candidate in the Makerfield byelection and is expected to launch a challenge to Keir Starmer’s leadership if he wins, has called for the rate to be cut from 20% to 10% to be in line with European rates.
Chefs have launched a campaign named “VAT’s the problem”, arguing that a cut in VAT would help struggling businesses. In France, Spain and Italy, VAT in pubs, restaurants, hotels and bars is 10%, and in Germany it is just 7%.
The restaurateur and BBC presenter Tom Kerridge, whose pubs have three Michelin stars between them, said he hoped Burnham would become prime minister.
“Andy Burnham has backed a cut to VAT and as Manchester mayor he represents one of the most vibrant and exciting cities in the UK with a growing food scene,” he said. “This is somebody who understands nightlife, food, hospitality and entertainment, he sees it as the lifeblood of creativity.
“It’s looking like there may be a future leadership contest and this is someone the whole of hospitality should get behind.”
The Reform UK leader, Nigel Farage, has also said he would cut VAT on hospitality to 10%. But Kerridge said he disagreed with Farage’s pledge to reinstate the two-child benefit cap to fund this.
“This is an easy photo opportunity for Nigel Farage to stand there with a pint and take advantage. Funding it by reinstating the two-child cap would push more children into poverty, which I do not support,” he said.
The chef said hospitality venues were closing at a rate of 21 a week because of hikes in business rates, employer national insurance and the minimum wage, as well as rising energy bills and food inflation.
“We have a country that is being run by spreadsheets in the Treasury as opposed to operators,” he said. “There are many people in government who are trying to understand hospitality. Andy Burnham has an understanding of it. It is perhaps the Treasury and Rachel Reeves who lacks understanding.”
Burnham has long campaigned for a cut to VAT for pubs, restaurants, hotels and bars, and has encouraged a lively hospitality scene in Manchester. He campaigned for the sector during the Covid crisis.
The entrepreneur Sacha Lord, Burnham’s adviser and friend who has been on the campaign trail in Makerfield, told the Guardian: “He has always supported this view. A VAT reduction is the one single mechanism that can save many hospitality businesses and jobs. I strongly maintain that view and will be pushing Andy to keep to his commitment.”
Other chefs said they were heartened by Burnham’s position on VAT.
Thomasina Miers, a co-founder of the restaurant chain Wahaca, said: “I think he really understands not only hospitality but because he is working in such an incredible devolved area, it has such a thriving restaurant industry. I think Andy Burnham does get it.”
She said the current Labour leadership did not understand the sector in the same way. “The government has clobbered young people, it feels so misguided, they talk about helping the worker but every policy they are doing is making it harder for people to get work. The national insurance tax felt particularly perverse.”
The Michelin-starred chef Tommy Banks, who owns the Black Swan at Oldstead and Roots in York, said: “I wholeheartedly support Andy Burnham’s comments on VAT – it feels like our industry is finally being heard. It’s a relief to hear someone at government level finally advocating for us at a time when our industry is at crisis point with more and more independent hospitality businesses closing each day. We need to bring our VAT rates down to match those across Europe and we need to do so urgently.”
Kerridge said: “Hospitality is now at full breaking point. It has now been bled dry. It is one of the highest-taxed industries. If Andy can do with the country what he’s done with Manchester, it would be great.”
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: theguardian.com
