AS a result of an industry-wide open letter to Scottish first minister John Swinney, signed by more than 100 of Scotland’s top hospitality businesses and leading chefs, the Scottish Government has officially given its support to the #VATsTheProblem campaign.
Deputy first minister Jenny Gilruth has written to the UK Government backing the campaign and urging it to ‘listen carefully’ to the sector’s call for the hospitality VAT rate to be cut to 10%, in line with the European average.
At the same time, Calum Kerr MSP has written to Prime Minister Andy Burnham on behalf of the SNP, writing: “As you will be aware, the #VATsTheProblem campaign is calling for a VAT cut on hospitality to 10% at the upcoming Budget.
“This is something the SNP has consistently called for and we are proud to stand behind that campaign. I therefore urge you to use the forthcoming Budget to introduce a 10% VAT rate for hospitality across the UK. I hope you will give this proposal the serious consideration it deserves.”
Pub and restaurant groups operating across Scotland are backing the campaign, including The DRG, Glendola Leisure, Greene King, Mitchells and Butlers, Punch Pubs & Co and Signature Pubs.
Many businesses central to Scotland’s reputation as a world-class visitor destination have put their names to the open letter, including the Balmoral Hotel in Edinburgh, Cameron House Resort on Loch Lomond, Macdonald Hotels, Andy Murray’s Cromlix Hotel in Dunblane, The Torridon in the Highlands, Auchrannie Resort in Arran and Kingsmills Hotel in Inverness.
The campaign is being supported by some of Scotland’s hospitality superstars, including Michelin-starred chef Tom Kitchin and Great British Menu winner Lorna McNee.
Speaking at a campaign event held in Glasgow last week, Kitchin had said: “The VAT rate we are paying is the highest in the world.
“This is hugely important to Scotland. You walk down high streets, you can see it. Restaurants are closing, pubs are closing, nightclubs are closing.”
Responding to the news that ScotGov had joined the campaign, Kitchin said: “It’s fantastic to see the Scottish Government and the SNP put their full support behind the #VATsTheProblem campaign and join our calls for hospitality VAT to be reduced to 10%, in line with Europe.
“I hope we will see the other political parties in Scotland and MSPs back the campaign.”
Glasgow operator Graham Suttle said: “A 10% rate would allow us to reinvest in staff. This is an opportunity to bring more young people into employment, and train them correctly.”
Colin Wilkinson of the SLTA added: “Cutting VAT is not a silver bullet for all the industry’s ills – but it’d be a start, and it can be done quickly.”
The #VATsTheProblem campaign has generated significant support among the public, with more than 390,000 signatories to the industry’s VAT petition.
The campaigners stressed: “We wholeheartedly believe that reducing the rate of VAT for hospitality, bringing it in line with the rest of Europe, is an important step in enabling hospitality businesses to grow the economy, create jobs and support our communities across Scotland.
“10% VAT is fair for hospitality.”
