Lower VAT rate for hospitality leads UKHospitality's 2024 three-point plan

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Lower VAT rate for hospitality leads UKHospitality's 2024 three-point plan

Related tags ukhospitality Government Finance Kate nicholls

UK Hospitality has unveiled its three-point plan for the coming year that will focus on growth, investment, and jobs.

Chief executive Kate Nicholls says that in the coming year, in which a general election will be held, the trade body will push for a lower rate of VAT for hospitality, leisure and tourism; seek a ‘root and branch’ reform of business rates and apprenticeship levy.

“The past year has been cull of challenges and we can’t pretend that 2024 won’t bring more of the same,” she says.

“But, with it being a general election year we’ve got a great opportunity to be able to profile the importance of the hospitality sector - culturally, socially, and economically with all the main parties and press ahead with the vital support packages we need to make sure the sector can survive and thrive.”

In the unveiling of its plan UKHospitality cited figures in economic report by Ignite Economics that showed that with the right environment, hospitality could increase its direct contribution to the economy by £29bn and create half a million new jobs by 2027.

UKHospitality says a lower rate of VAT will boost demand, help businesses overcome rising costs and prevent further price rises for consumers and is also calling for a permanent, lower rate multiplier for hospitality, leisure and tourism. “Root and branch reform of business rates has long been promised but remains the biggest barrier to investment in the high street,” it says.

The trade body is asking people in the sector to write their MP “and urge them, and their parties, to support a lower rate of VAT for hospitality, tourism and leisure”.

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