Celebrity chef Tom Kerridge has said he feels 'disappointed' and 'slightly let down' by the Prime Minister after his calls for a VAT reduction for hospitality went unanswered in the autumn Budget.
Earlier this year, Tom, who previously ran Manchester's Bull & Bear at the Stock Exchange Hotel, launched the #VATsTheProblem campaign, which urged the government to lower the rate of VAT from 20% to 10% for the nation's hospitality sector, including pubs, restaurants, cafes, bars, nightclubs and hotels.
The petition, which has so far received over 415,000 signatures, said intervention was needed after the UK's VAT rate was now considered to be higher than most of Europe and is reported to be causing many beloved venues across the country to close down amid crippling costs.
Campaign launched after Burnham comments
In August, Tom told the Manchester Evening News he was 'confident' that the door was open to push for a VAT reduction after Andy Burnham made comments just days into his role as Prime Minister, announcing cuts to business rates for pubs, clubs and live music venues from April next year.
But the Budget did not make reference to any VAT reduction for hospitality, and Tom, who is behind both The Hand & Flowers and The Coach in Buckinghamshire, said he was 'disappointed' after hoping some relief would be included.
Budget measures criticised
"My thoughts on yesterday's budget is one of initial disappointment and feeling slightly let down from a government we have been in conversation with and was hoping very much that they would hear and listen to what we were saying," he said in a video shared on Instagram.
While accepting that the increase in national minimum wage, which will rise by 3.9% to £13.21 for over-21s, was 'great for employees', he said it would be 'another burden of costs' for employers as part of what he described as a 'heavily laden and crippling business model'.
He also said that while the announced increase in the threshold on business rate relief for small businesses, from £12,000 to £18,000, was 'obviously something that's very positive' and an 'absolute bonus', it would not help multi-site operators and others who would not qualify.
Kerridge vows to continue campaign
Undeterred, however, Tom said he would continue to move forward with his VAT campaign. He said: "The reduction of VAT is something that we are going to continue to drive, continue speaking to the government and keep pushing for a fairer rate of VAT and taxes coming into hospitality, bring it in line with Europe and give hospitality the chance."
Tom added: "No luck this time. We are gonna keep pushing, and we are gonna keep knocking on that government door."
Echoing similar sentiments to Tom, many members of Manchester's hospitality sector also shared their response to the Budget earlier this week. "It's just very disappointing that it wasn't addressed," Kevin Connor, owner of the Pen and Pencil and BAB in the Northern Quarter, said that a VAT reduction was not included.
"Hospitality needs help. I appreciate they've reviewed the business rates, but there's a lot of businesses it won't affect. They just haven't addressed any issues, the big ones are VAT, rates and national insurance contributions. It's not really helped or hindered."
