Hospitality has always been about more than food, drink, rooms or reservations.
It is the local café that starts the day for a community. The restaurant that brings people together around a table. The hotel that welcomes visitors into a town. The pub, bar, venue or event space that gives a high street its energy.
But behind every great hospitality experience, there is a business working incredibly hard to make the numbers add up.
Across the UK, operators continue to face pressure from rising food costs, higher energy bills, staffing challenges, business rates, and cautious consumer spending. Margins are tight, confidence is under pressure, and many venues are having to make difficult decisions about pricing, opening hours, staffing and investment.
That is why the conversation around VAT matters.
VAT Is One Of The Biggest Pressures On Hospitality
At present, hospitality businesses in the UK are charged VAT at 20%.
For guests, that means VAT is built into the price of a meal out, a hotel stay, a coffee, a pint, or a special-occasion booking. For operators, it is another major cost pressure in an already challenging trading environment.
The #VATsTheProblem campaign is calling for hospitality VAT to be reduced to 10%, bringing the UK closer to countries such as France, Spain and Italy, where hospitality VAT is set at 10%. In Germany, the rate is even lower.
For an industry that plays such an important role in local economies, employment and community life, a fairer VAT rate would be a meaningful step forward.
There is an ongoing discussion within the sector about whether a lower VAT rate could ease pressure on businesses. While views differ, what’s clear is that VAT plays a meaningful role in how operators plan, price and protect their margins.
At The Full Range, we’re not here to campaign - but we are here to help operators understand how VAT interacts with the wider cost landscape they’re navigating.
What A Reduction Could Mean For Operators
A reduction from 20% to 10% would not solve all the challenges facing hospitality.
But it would give operators more room to breathe.
It could help businesses manage cost increases without passing every pressure directly on to customers. It could support stronger cash flow, protect jobs, and create more confidence for venues looking to invest in their teams, menus, spaces and guest experience.
For many businesses, this is not about making things easier. It is about making things more sustainable.
Hospitality operators are used to working hard, adapting quickly and finding creative ways to keep moving. But there is only so much pressure any business can absorb before difficult choices have to be made.
A fairer VAT rate would give venues more flexibility at the point they need it most.
Supporting Guests, Teams And Communities
When hospitality businesses are supported, the benefits reach much further than the business itself.
A thriving venue creates jobs. It supports suppliers. It brings footfall to high streets. It gives people places to meet, celebrate, work, relax and connect.
When venues close, communities lose more than a place to eat or drink. They lose part of their identity.
The #VATsTheProblem campaign puts this clearly: hospitality is at the heart of towns, cities and villages across the UK. It brings people together, but it is also under significant pressure.
Reducing VAT to 10% would help protect the businesses that bring life to our communities, while also helping to keep hospitality more affordable for the public.
A Stronger Sector Needs Stronger Support
At The Full Range, we work closely with hospitality businesses every day. We see the pressures operators are managing, from fluctuating supplier pricing to changing customer habits and the ongoing need to protect margins without compromising quality.
That is why smarter purchasing, strong supplier relationships and clear commercial insight are so important.
But procurement is only one part of the picture.
For hospitality to thrive, the wider trading environment has to support businesses too. A VAT reduction would be a practical, direct way to ease pressure across the sector and help operators build with more confidence.
It would support restaurants, bars, cafés, hotels, venues, pubs and many more businesses that contribute so much to the UK economy and to everyday life.
Working Together For A Fairer Future
The call for 10% VAT is about fairness, sustainability and long-term confidence.
It recognises the value of hospitality not just as an industry, but as a vital part of our communities. It acknowledges the pressure operators are under and offers a clear, practical way to help.
Hospitality has shown time and time again how resilient it can be. But resilience should not mean carrying every cost alone.
A fairer VAT rate would help protect jobs, support local businesses and keep hospitality moving forward.
And that matters to all of us.
Understanding VAT is one part of that picture - and we’re here to support operators through the rest.