Nearly 25% of UK pubs and restaurants lose money, research shows
Summary
Almost one in four pubs, bars, and restaurants in the UK are losing money, according to a recent survey. Industry leaders, including chef Tom Kerridge, want the government to lower the VAT (a sales tax) on hospitality from 20% to 10% to help the struggling sector.Key Facts
- A new survey shows 23% of UK hospitality businesses are losing money, up from 15% three months ago.
- About 1 in 6 of these businesses risk going bankrupt within a year.
- The hospitality sector is campaigning to reduce VAT on food and drink services from 20% to 10%.
- This VAT cut could cost the government between £10.5 billion and £12 billion.
- Other European countries have lower VAT rates for hospitality, ranging from 7% to 13.5%.
- The campaign is led by well-known chefs and business owners who say high taxes harm the industry.
- Labour's recent increases in national insurance and minimum wage, plus rising inflation and energy prices, are adding pressure on hospitality businesses.
- Some experts warn that a VAT cut may benefit larger companies more and that government funds could be used differently to support growth.
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