We’re backing the National VAT Campaign to Protect the Future of Britain’s Social Spaces
“We’re not asking for handouts. We’re asking for a fair chance to thrive.”
As one of Harrogate’s most popular independent hospitality venues we/re calling for urgent action to support the sector, as rising costs and the UK’s VAT burden are putting at risk businesses that play a vital role in communities across the country.
As a supporter of the national VAT’s The Problem campaign, Starling owner and Harrogate BID Chair Simon Midgley is proactively helping raise awareness locally of the challenges facing hospitality businesses and the potential impact on jobs, investment and community life if action is not taken.
The campaign is calling on the Government to reduce VAT for hospitality businesses, bringing the UK more in line with countries including France, Belgium and Germany, where lower VAT rates have been used to support the sector and encourage economic activity.
Simon said:
“Starling is busy, we’re doing well and we have ambitious plans for the future but the reality is that the cost pressures and tax burden facing hospitality businesses are enormous. Even successful businesses are finding it increasingly difficult to make the numbers stack up.”
“We want to invest, create jobs and grow, but where is the incentive to take that risk when costs continue to rise and margins continue to be squeezed?”
Simon believes the debate extends far beyond individual businesses.
“Hospitality is one of the most important parts of our social fabric. These venues aren’t just places to eat and drink. They’re where people meet friends, celebrate milestones, build relationships and feel part of a community.”
“For many villages, the local pub is the last remaining social hub. In towns and cities, cafés, restaurants and bars create spaces where people come together. If it becomes increasingly cheaper to buy food and drink from supermarkets and stay at home, we risk losing something incredibly valuable. Supermarkets do not pay VAT on the food they sell and have the buying power to sell alcohol at close to cost, it’s simply not a level playing field”
The hospitality sector is also one of the UK’s largest employers and provides important opportunities for younger people entering the workforce, Simon says.
“Hospitality gives many people their first experience of work. It develops confidence, communication skills and employability. If we continue to suppress the sector, there is a real danger of a knock-on effect on jobs, opportunities and local economies.”
“Once these businesses are gone, they’re incredibly difficult to replace. That may sound dramatic, but that’s genuinely where many operators feel we are heading.”
At Starling, the impact of the business extends far beyond food and drink.
The venue hosts regular community events, 4 book clubs, a weekly charity quiz and fundraising activities, supports local charities and provides opportunities for placement students from organisations including Henshaws and Harrogate Skills 4 Living.
Simon also volunteers his time as Chair of Harrogate BID, helping support local businesses and promote investment in the town.
“Successful hospitality businesses create value far beyond their own four walls. We support charities, create jobs, provide social spaces and contribute to the wider local economy.”
“The more successful we are, the more we can give back. We want to do more for our community, not less.”
While acknowledging that VAT reform is not a complete solution to the challenges facing the sector, Simon believes it is one practical step the Government could take quickly.
“We’re not asking for special treatment. We’re asking for a fair chance to thrive, invest and continue contributing to our communities.”
“Hospitality businesses have shown incredible resilience over the last few years. A reduction in VAT would send a clear signal that the sector matters and that the Government recognises the economic and social value we bring.”
The VAT’s The Problem campaign is calling for a reduction in VAT for hospitality, leisure and tourism businesses as part of wider efforts to support the long-term sustainability of the sector.
Sign the petition here: https://www.vatstheproblem.co.uk/