Should the Budget cut VAT on pubs, restaurants and hotels from 20% to 10%?
Pubs, restaurants, cafés and hotels currently charge the standard 20% VAT on meals, drinks and accommodation, while most supermarket food is zero-rated. The Budget is due on 28 October 2026, delivered by Chancellor John Healey, and a 10% rate is backed by a 400,000-signature petition from industry. Treasury figures put the cost at about £10.5bn a year, other analysts say £12bn or more, and a minister has said any cut must be fully funded. The government has so far announced a 20% business rates cut for pubs from April 2027 instead.
6 Opinions
Narrow no, because they'd still need to find the £10,000,000,000 from somewhere else. Let's be honest, COVID killed the pubs, restaurants appear overpriced for what you get, and club culture is dead. To succeed, these places need to try harder.
Will the excoriating levels of income tax, VAT is the cut that hits the bone of the hardworking working British people. Until tax on working is reduced, tax on spending should be scrapped.
Yes. Local pubs used to be the heart of the community, particularly small communities, rural communities, they were where you kept in contact with distant neighbours, who needed help and so on. Reduce vat please.
Yes, but with TARGETED help for independent community businesses. We don’t need more wetherspoons and they don’t need more tax cuts at the expense of everyone else
We’re losing pubs in particular at such a rate the something needs to be done to protect them and the service they provide to local communities
So many restaurants have closed on my area and they need help. Give them some relief chancellor!