In February, Andy Burnham, then mayor of Greater Manchester, publicly backed a lower rate of hospitality VAT, saying he would argue for one more closely aligned with rates across Europe.
Signatories span the breadth of the sector and include high-profile chefs alongside independent pubs, bars, restaurants, cafés, hotels and leisure businesses.
Angela Hartnett, Clare Smyth, Heston Blumenthal, Jason Atherton, Nathan Outlaw, Paul Ainsworth and Tom Kerridge are among the chefs to have signed the letter.
Major restaurant operators including Big Table Group, Bill’s, Franco Manca, Pizza Express, Wagamama, Wahaca and Wasabi have also added their names.
However, the #VATsTheProblem campaign says most signatories are small and medium-sized businesses operating venues “at the heart of their communities”.
The letter said: “It’s time for a fairer tax burden for hospitality. Without action, closures will only continue to accelerate, jobs will continue to be lost and opportunities for young people reduced.
“More than 370,000 people have signed the #VATsTheProblem petition calling for a 10% rate of VAT for hospitality, bringing the UK in line with the European average.
“We trust we can count on your support, following your comments in February this year that you would ‘argue for a VAT rate more consistent with what you find in Europe because of the social value that your businesses bring to places and towns’.
“A lower rate of VAT for hospitality can turn closures into openings, lost jobs into new jobs, and boarded-up high streets into thriving centres of community.
“Alongside your policy to reform business rates for the high street, we urge you to bring forward your plans to deliver a lower rate of VAT for hospitality.”
Kerridge said: “The reality is that 20% VAT is holding hospitality back. Hospitality is different from many other industries because so much of what we spend our money on is our teams. You can reclaim VAT on a product, but you can’t reclaim VAT on a person.
“This is all happening at a time when businesses are already dealing with rising wages, energy bills, food costs and business rates. We’re seeing the consequences, with businesses closing their doors every single week.
“That’s why hospitality businesses across the country have come together with one simple ask of the Prime Minister: bring hospitality VAT down to 10%, in line with our European neighbours.
“We don’t need another promise. We need action.”
Launched in June and spearheaded by Kerridge, #VATsTheProblem is a sector-wide campaign calling for hospitality VAT to be reduced from 20% to 10%. It is backed by UKHospitality, the British Beer and Pub Association and the British Institute of Innkeeping.