VAT’s the Problem - A Campaign for Fairness
Across our farm shops & cafes, we've witnessed first-hand the extraordinary pressures facing hospitality businesses over recent years.
Like many operators across the sector, we've absorbed soaring increases in energy costs, food inflation, wages, business rates and National Insurance contributions. We have worked tirelessly to protect jobs, support local farmers and producers, and continue offering the quality food and service our customers expect. But there comes a point where businesses can no longer shoulder these rising costs alone.
That's why we are supporting Tom Kerridge's "VAT's the Problem" campaign.
The campaign calls on the Government to reduce VAT for hospitality businesses, bringing the UK more into line with many of our European neighbours. Countries including France, Germany, Spain and Italy recognise hospitality as a vital economic and social asset and apply lower rates of VAT to food service businesses. These policies help support employment, they encourage investment and they keep hospitality affordable for consumers.
In contrast, the UK hospitality sector continues to face one of the highest VAT burdens in Europe.
This is particularly frustrating given the role businesses like ours play in local communities. Hospitality is often portrayed as a low-skilled industry, but anyone who has worked in the sector knows the opposite is true. Our teams include chefs, bakers, butchers, baristas, managers, front of house professionals and skilled retail staff. Every day they deliver exceptional experiences, manage complex operations and help showcase the very best of British food and farming.
At the same time, hospitality remains one of the country's largest employers and an important entry point into the workforce for many people. It creates opportunities, develops careers and supports thousands of local supply chains, including the farmers and producers we proudly work with.
A reduction in VAT would not simply benefit businesses. It would help protect jobs, support investment and vitally, encourage growth. It would also help keep eating out and visiting hospitality venues accessible for families who are already feeling the pressure of rising household costs.
We are not asking for special treatment. We are asking for a level playing field and recognition of the value we bring to our communities and the wider economy.
Tom Newey
CEO Cobbs Farm Shops