VAT’s The Problem!
Hospitality is one of the UK’s greatest success stories. It employs millions of people, gives young people their first jobs, keeps high streets alive and brings communities together.
But the sector is under enormous pressure.
Rising energy costs. Food inflation. Huge employment costs. Unjust business rates. The highest tax burden in the UK economy. And on top of all of that — a 20% VAT rate that is among the highest in Europe.
On 1 July, the hospitality industry is coming together to launch ‘VAT’s the Problem’ – the united sector campaign calling for hospitality VAT to be reduced from 20% to 10%. This is a plan for fair tax. This is a plan for growth.
Countries including Spain, Italy, France, Ireland and Germany know how important hospitality is to society, and they know it pays too much tax. That’s why they already support hospitality with lower VAT rates. The UK deserves the same.
A 10% VAT rate would:
• Support pubs, restaurants, cafes, hotels and nightclubs, and many more.
• Get businesses investing in jobs and helping our customers.
• Strengthen high streets and local communities.
Because when hospitality businesses close, communities lose far more than places to eat and drink — they lose connection, opportunity and local identity.
Vat’s The Problem – 10% is fair for hospitality.
This campaign focusses specifically on the hospitality industry and at Cologin that means the BARN BAR. And here’s why the Barn Bar is at the greatest risk from VAT. Food is zero rated on purchase, (so there’s no VAT to claim back) but is charged out with 20% Vat added. This is because Angus has ‘added value’ to the raw ingredients that are cooked, plated and served in The Barn Bar. Unfairly, a ready meal or other ‘processed’ foods sold in a supermarket are still zero rated for VAT. It makes no sense and creates a hugely unlevel playing field which means small business can not compete on equal terms. Don’t get me wrong, Cologin is used to competing on unfair terms with other accommodation providers whose turnover is below the VAT threshold. It makes our accommodation 20% more expensive than smaller operators but at least we can claim back a fair proportion of the VAT we pay when buying goods used in our business.
Cologin customers are fortunate to have a great local pub at the heart of our farm. Julie and Angus offer fabulous food and drink and they really do need our support. So if you’d like to sign the petition to help keep The Barn Bar open please follow this link: