03/06/2026
The Independent Pub Alliance proudly supports the 'VAT's The Problem’ campaign spearheaded by Tom Kerridge and hospitality leaders across the UK.
For years, pubs, bars, restaurants and hospitality venues have warned that the current VAT burden is unsustainable. While costs continue to rise across the board, wages, energy, business rates, insurance and suppliers, hospitality businesses are still expected to hand over 20% VAT on food and drink sales in one of the toughest trading environments the industry has ever faced.
A reduction in hospitality VAT to 10% would not be a handout. It would be a lifeline.
It would allow struggling pubs and hospitality venues to:
• Keep prices fairer for customers
• Protect jobs
• Invest back into their businesses
• Improve wages and working conditions
• Reduce closures in communities across the country
The UK currently has one of the highest hospitality VAT rates in Europe, placing independent venues at a huge disadvantage compared with many neighbouring countries that already recognise hospitality as a vital economic and social sector worth protecting.
Pubs are more than businesses. They are community hubs, social spaces, employers, fundraisers and part of Britain’s cultural identity. Every pub closure represents lost jobs, lost investment and the loss of another community meeting place.
Supporting this campaign is about supporting the future of British hospitality.
The IPA may still be growing as an organisation, but remaining silent on an issue this important would serve nobody. We believe the industry must stand together, regardless of who is leading the conversation, and push for meaningful long-term support before more businesses disappear for good.
