MANCHESTER — Andy Burnham, the mayor of Manchester, has renewed his call for a reduction in the hospitality Value Added Tax (VAT) rate from 20 percent to 10 percent. He is standing as the Labour candidate in the Makerfield byelection.

Burnham has previously campaigned for this reduction and advocated for the hospitality sector during the COVID-19 pandemic. Tom Kerridge, a restaurateur and television presenter, said Burnham has backed this VAT change, noting that Manchester has a growing food scene. Kerridge stated that hospitality venues are currently closing at a rate of 21 per week. He cited business rates, employer national insurance contributions, the minimum wage, rising energy prices, and food inflation as reasons for these closures.

A campaign titled "VAT's the problem" has been organized by chefs and restaurateurs to advocate for this change. In France, Spain, and Italy, the VAT rate applied to pubs, restaurants, hotels, and bars is 10 percent, while in Germany, it is 7 percent. Kerridge said, "Hospitality is now at full breaking point. It has now been bled dry. It is one of the highest-taxed industries."

Sacha Lord, an entrepreneur and adviser to Burnham, said Burnham has always supported the view that a VAT reduction is the one single mechanism that can save many hospitality businesses and jobs. Thomasina Miers, co-founder of the Wahaca restaurant chain, said Burnham understands the sector because he works in a devolved area with a thriving restaurant industry. She stated that the government has affected young people and that policies are making it harder for people to find work. Kerridge also remarked that funding a VAT reduction by reinstating the two-child cap would push more children into poverty.

Burnham is expected to challenge Keir Starmer for the Labour leadership if he wins the byelection, according to reports. Kerridge believes, "It's looking like there may be a future leadership contest and this is someone the whole of hospitality should get behind."