Sacha Lord calls on Labour to reinstate hospitality VAT cut

Sacha Lord, the night time economy adviser for Greater Manchester, has urged the Labour party to reinstate hospitality VAT from 20% to 12.5%.

The move would allow pubs, restaurants and clubs to pay the same rate of VAT as they did during the pandemic, while placing the UK rate in line with that of other European countries, as theirs are closer to 10%.

Lord said he would also call for an end to the "outdated and unfair" business rate scheme as well as strengthening the remit of energy market regulator Ofgem.

The proposals form part of his larger five-point policy plan and are being outlined at the Labour party conference in Liverpool, which is scheduled to end this Wednesday (11 October).

Lord, who is also co-founder of the Warehouse Project club nights in greater Manchester and a member of the Labour party since November 2022, said: "The 12.5 per cent VAT rate for the hospitality industry was a lifeline for the sectors and it must be reinstated either by this government or the next one, which I hope will be led by Sir Keir Starmer. The people's party should implement policies that help the venues, pubs and place the people frequent."

He added: "The hospitality industry does not want or expect handouts, but it does need a business and regulatory environment in which it can flourish after a period of unprecedented economic hardship."

Tweeting his support on X, formerly Twitter, Alex Claridge, chef-patron of Wilderness and night time economy adviser for the West Midlands, said: "Sacha knows he has my full support on today's launched manifesto. Oh this point in particular — whilst I don't see change coming under current govt — all of us need to unite. No if, only when."

It comes after Andy Lennox, who runs the Fired Up hospitality group in Dorset, launched a petition calling for a 10% hospitality VAT late last year. The government responded saying there are "no current plans" to reduce the sector's VAT rate this April.