Earlier this month, the owner of St Martha Restaurant reached out to discuss the struggles the hospitality industry is facing. 

Hospitality businesses are key to building a sense of place in any community. However, they are not immune to inflationary pressures and rising costs. 

Sadly, this wasn’t the first time I’d heard of the issue. Speaking to other businesses across the constituency, the story had been the same: 20% VAT, the second highest rate in Europe, is uniquely crippling for hospitality businesses in the UK.  When external factors drive up costs, independents are squeezed by this additional charge until they go bust.  

When I was first approached regarding this issue in November last year, I signed a letter to the Treasury calling for Business Rates reform and a review of VAT levels across the sector.  

The letter set out the challenges facing pubs, restaurants, hotels, night-time venues and leisure businesses, and called for meaningful action to support the sector. 

The letter highlighted several key areas where change is urgently needed, including: 

• Reform of business rates so that hospitality and leisure businesses benefit from a fairer, more sustainable system. 
• Reviewing employer National Insurance changes, which have impacted recruitment and staffing. 
• Commissioning a full study into VAT for hospitality and tourism, given the evidence that a lower rate could help unlock growth, protect jobs, and strengthen local high streets.

In April, I also met with Hospitality Together to support their campaign to reduce VAT to 10%.  

After meeting with Kelly, it became clear that a greater sense of urgency was required to protect local businesses. Importantly, the letter that she had prepared had gained the signatures of over 50 hospitality businesses across Crewe & Nantwich. This sends a clear signal to the Government of the scale of the issue for our area, and I’d like to thank Kelly for her efforts in coordinating the responses. 

I’ve written to the Chancellor outlining our conversation and have requested a meeting to demand greater financial support for businesses like St Martha’s.  

The message has been clear and consistent: rising costs, pressures around staffing, and the abnormally high burden of VAT levels are making it impossible for venues to thrive, invest, and continue playing such an important role in our local economy and community.