Chefs and restaurateurs have expressed hope that Andy Burnham becomes prime minister after he backed calls to cut VAT for hospitality businesses from 20% to 10%. Burnham, standing as the Labour candidate in the Makerfield byelection and expected to challenge Keir Starmer's leadership if he wins, argues the reduction would align with European rates.
Chefs Launch VAT Campaign
Chefs have launched a campaign named 'VAT's the problem', asserting that a cut would help struggling businesses. In France, Spain, and Italy, VAT on pubs, restaurants, hotels, and bars is 10%, while in Germany it is just 7%.
Tom Kerridge, a restaurateur and BBC presenter whose pubs hold three Michelin stars, said he hopes Burnham becomes 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,' Kerridge 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.'
Farage Also Pledges VAT Cut
Reform UK leader Nigel Farage has also promised to cut VAT on hospitality to 10%. However, Kerridge disagreed with Farage's plan to fund this by reinstating the two-child benefit cap. '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 noted that hospitality venues are closing at a rate of 21 per week due to hikes in business rates, employer national insurance, minimum wage, rising energy bills, and food inflation. 'We have a country that is being run by spreadsheets in the Treasury as opposed to operators,' Kerridge added. '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's Long-Standing Campaign
Burnham has long advocated for a VAT cut for pubs, restaurants, hotels, and bars, and has fostered a vibrant hospitality scene in Manchester. He campaigned for the sector during the Covid crisis.
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 Express Support
Thomasina Miers, 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 criticised the current Labour leadership, saying: '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.'
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 concluded: '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.'
