VAT is a problem and Britain's hospitality businesses are paying the price, warns top chef Tom Kerridge

Celebrity chef Tom Kerridge has urged Andy Burnham to deliver a permanent VAT cut for hospitality – as a temporary tax break for parts of the sector ends on Tuesday.The plea from Kerridge comes as the temporary VAT cut from 20 per cent to 5 per cent for children's meals in restaurants and tickets to family attractions ends.The tax break ran from June 25 to September 1 as the government said it wanted to 'help families enjoy weekend treats, days out, and day trips that make the most of the summer.'Writing for The Mail, Kerridge said Labour 'has now recognised that VAT is the lever to pull to drive footfall, support families and back hospitality businesses through its summer VAT scheme'.But he said this was 'time-limited and narrow in scope' despite being 'important recognition.'Kerridge said that the 'next logical step is a lower rate for the entire hospitality sector.' Hospitality plea: 'The industry needs breathing space to survive, invest and grow.'The chef who is a familiar face on cooking television shows including Saturday Kitchen and Bake Off, has been campaigning for VAT to be cut from 20pc to 10pc to match rates in Europe.Pubs, hotels and restaurants need 'breathing space to survive, invest and grow,' he said, after food, energy and employment costs have risen while business rates are another 'headache.'He accused the Government of 'making it harder to run a hospitality business in Britain' than compared with rival European countries, which charge lower rates of VAT on the sector.Ireland cut its VAT rate for hospitality from 13.5pc to 9pc in July while France, Italy and Spain have a 10pc rate.Kerridge argues that calls for a cut are not 'hospitality wanting a special favour' but 'about survival'.His remarks come after interventions this week from Asda chairman Allan Leighton and Sports Direct tycoon Mike Ashley, who told the Government businesses needed respite from heavy taxes.Kerridge wrote: 'A VAT cut isn't a handout. It is an investment in businesses that employ millions of people and generate billions for our economy.'He said that when a pub or restaurant closes, 'you don't just lose a business' - as communities lose jobs, footfall and a place for important social connections.The industry also often gives young people their first job, he argues - at a time when youth joblessness has hit worrying levels and been declared a national crisis. Kerridge said that when a pub or restaurant closes, 'you don't just lose a business'Tom Kerridge: VAT's the problem – and Britain's hospitality businesses are paying the price There's something I've noticed about Britain over the years, writes Tom KerridgeWe're very good at saying how much we love our pubs, restaurants and cafés.We talk about them as part of the fabric of the country. We celebrate the great British pub. We tell the world that our hospitality is one of the things that makes Britain special.But loving something and looking after it are two very different things.Right now, we're not looking after hospitality.I've spent my entire working life in kitchens and restaurants. I know what it is like when the bills keep getting bigger but the money coming through the door doesn't.Food costs are up. Energy costs are up. Employment costs are up. Business rates are a headache. And then there's VAT.20 per cent.That's what the Government takes from hospitality every time someone goes out for a meal, books a hotel or visits many of the businesses that make our high streets tick.And here's the bit I simply don't understand: Britain has one of the highest rates of VAT on hospitality in Europe. France is 10 per cent. Italy is 10 per cent. Spain is 10 per cent. Ireland has just reduced its rate to 9 per cent. Germany has also just reduced its rate to 7 per cent, down from 19 per cent.So why are we making it harder to run a hospitality business in Britain than in so many of the European countries we compete with?When you pay £120 for a meal, £20 goes straight to the Treasury in VAT. But the restaurant can't reclaim VAT on its biggest and most important costs – paying its team and buying most of its food. You can't reclaim VAT on a person, so that 20% comes directly out of the money it has left to pay wages, bills and keep the doors open.This isn't about hospitality wanting a special favour.It's about survival.Hospitality employs 3.6 million people and contributes £96 billion to our economy. It gives young people their first job, provides careers and apprenticeships, and brings people into our town centres.And when a pub or restaurant closes, you don't just lose a business.You lose jobs.You lose footfall.You lose somewhere to meet your mates, take your mum for lunch, celebrate your daughter's birthday or have a pint with the bloke who lives three doors down.That matters.We've already seen more than 16,000 hospitality closures since the pandemic, with 305 net closures in just the first three months of this year. That is roughly three venues disappearing every day.And this isn't some distant problem affecting people in an industry you never think about.It's your local.That's why I've spearheaded the VAT's the Problem campaign, alongside businesses and organisations right across hospitality.Our message is simple: 10 per cent is fair for hospitality.I know the obvious response will be: 'But the Treasury can't afford it.'I understand that. I really do.But we also need to ask what happens if we continue allowing businesses to close, people to lose their jobs and our high streets to empty.The Government has now recognised that VAT is the lever to pull to drive footfall, support families and back hospitality businesses through its summer VAT scheme.Yes, it was time-limited and narrow in scope, but it was important recognition. Tuesday is the last day of that summer scheme, and the next logical step is a lower rate for the entire hospitality sector.A VAT cut isn't a handout. It is an investment in businesses that employ millions of people and generate billions for our economy. It is delivering fairness for hospitality, which has the highest tax burden in the economy. The industry needs breathing space to survive, invest and grow.And I don't want to see a Britain where the only places left on our high streets are betting shops, vape shops and boarded-up premises.I want my son to grow up in a country where there are still proper pubs.Where restaurants are busy.Where young people can get their first job.Where communities have somewhere to come together.We have some of the best hospitality in the world.So let's start treating it like it matters.VAT's the problem. 10 per cent is fair.If you care about your local pub, restaurant, café or hotel, sign the petition and make your voice heard.Because once these places are gone, we won't get them back.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you