A coalition of hospitality businesses, operating under the banner of the 'VAT’s The Problem' campaign, has formally requested that Greater Manchester Mayor Andy Burnham intervene to support a reduction in the hospitality VAT rate. The group is calling for the tax to be halved from its current level of 20% to 10%.

Proponents of the campaign argue that the current tax burden is unsustainable for many small and medium-sized enterprises in the sector. They contend that a lower VAT rate would provide the necessary financial breathing room for businesses to manage inflationary pressures, maintain staffing levels, and remain viable in a challenging economic climate. The campaign suggests that the current tax structure acts as a barrier to growth and contributes to the closure of local venues.

While the campaign has brought the issue to the forefront of regional policy discussions, the response from the Mayor’s office and the potential economic trade-offs of such a tax cut remain subjects of ongoing debate. Critics of broad VAT cuts often point to the loss of government revenue, while industry advocates maintain that the stimulation of the hospitality sector would ultimately benefit the broader economy. As of now, the request remains a proposal, with no formal commitment from the Mayor to lobby the national government for this specific fiscal change.