In the UK, we pay one of the highest VAT rates in Europe. 20% extra in VAT for a meal out or stay away. In France, Spain and Italy, it’s 10%. In Germany 7%.
The campaign, which launched in June 2026 and is supported by UKHospitality, calls for the government to reduce the rate of VAT on hospitality to 10%.
At the time of writing, just two days after its launch, the petition has already reached more than 100,000 signatories. The petition will be launched to consumers on 1 July and aims to get to 1 million signatures.
We believe a VAT cut is the best way to help hospitality, stimulate growth and jobs, and support our high streets and local communities.
There has already been an acknowledgement that VAT can be the lever to support growth after Rachel Reeve’s ‘Great British Summer Savings’ package announced a temporary VAT reduction for family activities from 20% to 5% between 25 June and 1 September. This campaign asks the government to go further – with a VAT reduction across the board as a permanent measure to allow all those struggling hotels, pubs and restaurants to continue to deliver for their communities and the economy.
Take Action
To learn more about the campaign and show your support by signing the petition, visit the ‘VATs the Problem’ website.
Leighton is Managing Partner at Rouse Partners and supports a wide-ranging client portfolio. He also specialises in business advisory and corporate finance work.
