Tax Parity Day – 25 September 2013: Reduction in VAT for Hospitality Sector could mean more jobs and a boost to UK economy

18 Sep 2013

Hospitality sector could be key in boosting UK economy, that’s according to the VAT Club JB1, headed by veteran VAT campaigner Jacques Borel, who is organising a Tax Parity Day, across the UK on Wednesday 25 September.

Publicans, restaurateurs and food service operators are being urged to reduce their prices by 7.5% for one day as part of a national day of action aimed at bringing in VAT parity - the amount by which prices could fall if VAT was cut to 5%, assuming that 60% of any reduction is passed on customers.

According to the Publican's Morning Advertiser, it is estimated that up to fifteen thousand businesses will reduce their prices on the national day of action, with leading pub operators, brewers, restaurants, hotel operators and food service operators across the UK backing the initiative.

Matthew Burge, specialist adviser to the Hospitality & Leisure Sector, with an emphasis on entrepreneurial and owner managed businesses, comments: “The support the Tax Parity Day initiative is generating comes as no surprise. For years now, there has been a huge discrepancy in the VAT burden at twenty percent on pubs and restaurants, versus that placed on supermarkets, which pay virtually no VAT on food, enabling them to subsidise sales elsewhere.

“The Tax Parity Day campaign on 25 September seeks to address this inequality, with Borel even talking about a potential rise in the amount of taxes the Government receives, as pubs and restaurant staff numbers swell, meaning more indirect gains to the Exchequer as more jobs created.”

A recent State of the Nation 20132 Report from People 1st found that the hospitality sector (together with tourism) employs seven percent of the working population – that’s one in every fourteen jobs in the UK. The sector also plays an important role in the success of events such as the London 2012 Olympic Games and Paralympics, and in strengthening the UK’s position as a top-ten global brand3.

Matthew continues: “With only about one in five employers in the hospitality sector seeking business advice in the last twelve months, and with less than half admitting to having a business plan, business owners must establish a more strategic approach to business planning and staff training. The hospitality sector offers good enterprise opportunities to entrepreneurs, with low barriers to entry. But those with a considered business plan and a sector specialist to advise them are more likely to reap the rewards of increased sales and turnover.”

To speak to Matthew Burge about how Beavis Morgan can help you and your hospitality business, call 020 7417 0417 or For more information about Tax Parity Day visit


  1. VAT Club - promoting employment benefits of a lower VAT rate for the sector
  2. People 1st - the skills council for hospitality, passenger transport, travel and tourism
  3. FutureBrand - Country Brand Index 2012-13 -