Sacha Lord calls for the Government to reverse the hospitality VAT increase

The campaign comes after the Government increased VAT on hospitality from 5% to 12.5% on 1 October, despite pleas from the sector, and it is expected on 1 April next year, the Government will introduce a second VAT hike, a Red Wall Tax, taking it to 20%. 

In a video for the campaign’s website, Lord said: “During lockdown the government actually did some really good things, one of them being they reduced VAT from 20%, down to 5%, and that absolutely saved jobs and the businesses that you're going to right now.  

Business closures and job losses 

“They increased it to 12.5% only a few weeks ago, but the intention is, again, to increase it up to 20%. To go from five to 20%, in only six months will close businesses, it will create job losses up to 120,000. 

“I’m asking everybody now, protect your local pub, protect your local restaurants, protect family businesses and contact your MP, let's make as much noise as we can, because sadly, if we don't axe the Redwall tax, we know it's going to affect the poorest much harder than it affects the richest. 

“It affects the North much harder than the South, we've seen the numbers we've seen the stats, so please join me. Let's become a force and let's axe the Redwall tax.” 

Sectors revenue third lower than pre coronavirus 

Hospitality has suffered immensely over the past two years, with losses estimated at £80.8bn in the first 12 months of the pandemic alone and the sectors revenue is still almost a third lower than it was before coronavirus hit.  

Leading hospitality sector bodies, including UKHospitality and British Beer & Pub Association, have echoed Lords call for the Government to shelve plans to introduce a second VAT rise in April 2022 stating the sector is not yet strong enough to cope with the pressures this will bring.