02/09/2026
Pubs, restaurants, cafés and hotels continue to face soaring employment costs, rising supplier prices, higher National Insurance contributions and squeezed consumer spending.
Yet the UK still applies one of the highest rates of VAT to hospitality in Europe.
While business rates discounts provide some breathing space, many operators need more meaningful support to protect jobs, maintain service standards and remain profitable.
A serious conversation about hospitality VAT is long overdue.
As BII Accredited Advisors to the Licensed Trade, we work with hospitality businesses every day and see first-hand the challenges operators face.
Do you think a reduced VAT rate would make a bigger difference than business rates relief?
Recent reporting from The Guardian suggests that many hospitality businesses are feeling more optimistic following the Government's announcement of business rates relief for pubs, clubs and live music