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Over 100 Scottish chefs and businesses urge first minister to back 10% VAT

UKHospitality alongside more than 100 of the top chefs and hospitality businesses across Scotland have signed a letter addressed to the first minister, urging the government to back the #VATsTheProblem campaign asking for a reduction in VAT to 10%.

In the open letter, the group of hospitality operators urged Job Swinney to put his support behind the campaign and join calls for the UK government as a whole to reduce hospitality’s VAT burden, in line with the European average.

Campaign supporters include Michelin-starred chef Tom Kitchin, Great British Menu winner Lorna McNee and the Balmoral Hotel in Edinburgh.

Other signatories include Cameron House Resort on Loch Lomond, Macdonald Hotels, Andy Murray-owned Cromlix Hotel in Dunblane, The Torridon in the Highlands, Auchrannie Resort in Arran and Kingsmills Hotel in Inverness.

Pub and restaurant groups operating across Scotland have also backed the campaign, including The DRG, Glendola Leisure, Greene King, Mitchells and Butlers and Punch Pubs and Co, as well as Signature Pubs.

The letter said: “As leading businesses, chefs and operators across Scotland, we see first-hand the powerhouse nature of Scottish hospitality, nightlife, leisure and tourism. But the sector is under enormous pressure. Its tax burden is among the highest in the economy. This financial strain is causing business closures, lost jobs and harm to our communities, which are losing their much-loved local venues.

“The #VATsTheProblem campaign has generated significant support, with more than 380,000 signatures from members of the public supporting our calls. 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.”

It continued: “Ahead of the UK Budget, we ask that the Scottish government formally supports our calls for 10% hospitality VAT and writes to the chancellor of the exchequer and the treasury urging them to act. The Scottish government has, in the past, been a supporter of hospitality’s call for a reduced rate of VAT and we hope you can lend your government’s support again.”

Swinney is being asked to honour his party’s tax policy

News Analysis

The political history behind this appeal predates the present campaign. In September 2020, ministers had temporarily cut hospitality VAT to 5%. Cross-party MPs including the SNP then backed an extension beyond January 2021, turning emergency relief into an argument for a lasting settlement. That earlier intervention matters because it established lower hospitality VAT as an SNP position well before the party placed it in a manifesto.

That consensus did not survive Treasury policy. After UKHospitality failed to preserve the reduced rate, ministers returned VAT to 20% in April 2022, despite the trade body warning that the change would raise prices and restrict recovery. That failure changed the campaign’s method. It moved from defending an enacted concession to recruiting political allies against the restored rate; the present letter applies that strategy in Scotland.

By June 2024, however, the SNP had gone beyond backbench sympathy: its manifesto pledged a lower hospitality VAT rate and said the Scottish government would reform the levy. That promise now constrains Swinney’s response. UKHospitality Scotland welcomed the policy but immediately defined delivery as joint work, with executive director Leon Thompson calling on the SNP to work with the UK Government to make the case for change.

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UKHospitality alongside more than 100 of the top chefs and hospitality businesses across Scotland have signed a letter addressed to the first minister, urging the government to back the #VATsTheProblem campaign asking for a reduction in VAT to 10%.

In the open letter, the group of hospitality operators urged Job Swinney to put his support behind the campaign and join calls for the UK government as a whole to reduce hospitality’s VAT burden, in line with the European average.

Campaign supporters include Michelin-starred chef Tom Kitchin, Great British Menu winner Lorna McNee and the Balmoral Hotel in Edinburgh.

Other signatories include Cameron House Resort on Loch Lomond, Macdonald Hotels, Andy Murray-owned Cromlix Hotel in Dunblane, The Torridon in the Highlands, Auchrannie Resort in Arran and Kingsmills Hotel in Inverness.

Pub and restaurant groups operating across Scotland have also backed the campaign, including The DRG, Glendola Leisure, Greene King, Mitchells and Butlers and Punch Pubs and Co, as well as Signature Pubs.

The letter said: “As leading businesses, chefs and operators across Scotland, we see first-hand the powerhouse nature of Scottish hospitality, nightlife, leisure and tourism. But the sector is under enormous pressure. Its tax burden is among the highest in the economy. This financial strain is causing business closures, lost jobs and harm to our communities, which are losing their much-loved local venues.

“The #VATsTheProblem campaign has generated significant support, with more than 380,000 signatures from members of the public supporting our calls. 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.”

It continued: “Ahead of the UK Budget, we ask that the Scottish government formally supports our calls for 10% hospitality VAT and writes to the chancellor of the exchequer and the treasury urging them to act. The Scottish government has, in the past, been a supporter of hospitality’s call for a reduced rate of VAT and we hope you can lend your government’s support again.”

Swinney is being asked to honour his party’s tax policy

News Analysis

The political history behind this appeal predates the present campaign. In September 2020, ministers had temporarily cut hospitality VAT to 5%. Cross-party MPs including the SNP then backed an extension beyond January 2021, turning emergency relief into an argument for a lasting settlement. That earlier intervention matters because it established lower hospitality VAT as an SNP position well before the party placed it in a manifesto.

That consensus did not survive Treasury policy. After UKHospitality failed to preserve the reduced rate, ministers returned VAT to 20% in April 2022, despite the trade body warning that the change would raise prices and restrict recovery. That failure changed the campaign’s method. It moved from defending an enacted concession to recruiting political allies against the restored rate; the present letter applies that strategy in Scotland.

By June 2024, however, the SNP had gone beyond backbench sympathy: its manifesto pledged a lower hospitality VAT rate and said the Scottish government would reform the levy. That promise now constrains Swinney’s response. UKHospitality Scotland welcomed the policy but immediately defined delivery as joint work, with executive director Leon Thompson calling on the SNP to work with the UK Government to make the case for change.

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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.

The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making

The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.

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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution

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