West Dorset pubs and restaurants backing campaign to cut VAT
West Dorset pubs and restaurants launched a campaign on July 1 to cut UK hospitality VAT from 20% to 10%, citing unsustainable costs and industry decline. Business owners like Steve Attrill and Alex Marshall argue the tax burden, combined with rising wages and energy bills, is pushing establishments like Beach and Barnicott in Bridport to close, while celebrity chef Mark Hix supports the push for government intervention to save jobs and tourism revenue.
Businesses in west Dorset have joined a nationwide campaign urging the UK government to reduce VAT on hospitality from 20% to 10%, arguing the current rate is unsustainable. The initiative, named VAT’s The Problem, launches July 1 as the industry faces rising costs, including National Insurance hikes, minimum wage increases, and higher utility prices. Steve Attrill, owner of Hive Beach Café, The Club House, and The Watch House, highlighted that the UK’s VAT rate is among the highest in Europe, compared to 10% in France and Spain and 7% in Germany. Supporters claim the tax burden—20% of every food sale—combined with other expenses, absorbs nearly 45% of their income. Alex Marshall of the Pymore Inn noted the government previously reduced VAT to 10% for children’s meals, suggesting similar relief for raw ingredients could help. The campaign follows a wave of closures, including Bridport’s Beach and Barnicott and Weymouth’s Slug and Lettuce, attributed to financial strain. Celebrity chef Mark Hix, operating a restaurant in Lyme Regis, called the VAT cut a ‘no brainer,’ emphasizing hospitality’s role in tourism and employment. Ross Moore of Platform Restaurant described the sector as ‘on its knees’ due to inflation, energy costs, and youth unemployment, urging Labour leaders Keir Starmer and Rachel Reeves to act. The push aims to reverse a trend of one pub closing daily in the UK last year, with hundreds of restaurants also shutting. Businesses argue the tax disparity stifles growth, with rising operational costs leaving little profit margin. The campaign seeks to align UK VAT with European competitors, framing the reduction as essential for survival and job creation. Participants stress immediate action is needed to prevent further closures and revive the industry ahead of peak summer demand.
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