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Scottish government backs VAT campaign

The SNP’s backing for the campaign comes after over 100 leading figures in the Scottish hospitality industry signed an open letter to First Minister John Swinney last week.

Both Deputy First Minister Jennifer Gilruth and Calum Kerr MSP have written to the Prime Minister on behalf of their party, urging Westminster to listen to the on-trade.

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As part of Kerr’s letter, he wrote: “As you will be aware, the #VATsTheProblem campaign is calling for a VAT cut on hospitality to 10% at the upcoming Budget. This is something the SNP has consistently called for and we are proud to stand behind that campaign with the Deputy First Minister having written to the Treasury last week too.

“I therefore urge you to use the forthcoming Budget to introduce a 10% VAT rate for hospitality across the UK. I hope you will give this proposal the serious consideration it deserves and commit to reducing hospitality VAT to 10%.”

One of the signatories of last week’s open letter, Michelin-starred chef Tom Kitchin, added: “It’s fantastic to see the Scottish Government and the SNP put their full support behind the #VATsTheProblem campaign and join our calls for hospitality VAT to be reduced to 10%, in line with Europe.”

The UK currently has the second highest rate of VAT for hospitality in Europe at 20% – behind only Denmark at 25%.

Meanwhile, countries such as France, Italy and Spain all have a 10% rate for hospitality, while in Germany it is as low as 7%. The EU average rate is 12.8%.

Since its launch, the campaign has earned significant support, garnering more than 390,000 signatories.

Significantly, prior to his election, Prime Minister Andy Burnham had expressed his backing for a VAT cut for hospitality businesses.

Earlier this month, over 800 businesses signed an open letter to Burnham, asking him to stay true to his previous comments, in which he said he would “argue for a VAT rate more consistent with what you find in Europe because of the social value that your businesses bring to places and towns”.

The industry will hope that the SNP’s decision will put pressure on Westminster, as Kitchin noted: “I hope we will see the other political parties in Scotland and MSPs back the campaign, as well as Scottish MPs, to put even more pressure on the UK Government to act.”

The #VATsTheProblem petition is avaliable to sign here. 

• Scotland
• Government
• scottish government
• petition
• Tom Kerridge
• SNP
• VATsTheProblem
• Andy Burnham
• John Swinney
• Tom Kitchin