01/06/2026
Please like and share and get this out their doing his bit to help our amazing industry we all love so much ❤️ thank you let’s get signing ✍️………
People don’t always realise how VAT affects small hospitality businesses.
As a cakery, we don’t pay VAT on many of the ingredients we buy because basic food products aren’t classed as luxury items. But the moment we turn those ingredients into a finished product and sell it as a brownie, cake, dessert or treat, we’re charged 20% VAT on the sale price.
So on a £3.50 brownie, around 58p goes straight to the VAT man before we’ve paid a penny towards rent, electricity, insurance, packaging, staff wages, National Insurance contributions, business rates, or any of the other rising costs that come with running a small business.
Hospitality businesses across the UK are being squeezed from every direction. Rising ingredient costs, higher wages, increased energy bills and business rates are already making it harder than ever to survive. Adding 20% VAT on top makes it even tougher.
That’s why it’s so important to support the campaign being backed by chef Tom Kerridge and the UK hospitality sector, calling for a reduction in hospitality VAT from 20% to 10%. The campaign argues that a lower VAT rate would help protect jobs, support independent businesses, and keep our high streets alive. (Instagram)
If you care about your local cafés, bakeries, pubs, restaurants and independent food businesses, please take a moment to support and share the petition. The hospitality industry isn’t asking for a bailout — it’s asking for a fair chance to survive and grow.
