Tuesday, October 20, 2026 Hotel Post The story, straight
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Scottish Government backs the #VATsTheProblem VAT cut call

Deputy First Minister Jenny Gilruth and SNP MSP Calum Kerr have written to the UK Government urging a 10% hospitality VAT rate at the Budget.

The Scottish Government has backed the #VATsTheProblem campaign. Deputy First Minister Jenny Gilruth has written to the UK Government urging it to listen to the sector. SNP MSP Calum Kerr has written to the Prime Minister asking for hospitality VAT to be cut to 10% at the Budget.

UKHospitality published the news on 28 September 2026. The backing follows an open letter to the First Minister from more than 100 Scottish hospitality figures the week before.

The two letters

Gilruth wrote to the UK Government. Kerr wrote to the Prime Minister on behalf of the SNP. Both backed the campaign's ask for a 10% hospitality VAT rate across the UK.

Kerr wrote: "As you will be aware, the #VATsTheProblem campaign is calling for a VAT cut on hospitality to 10% at the upcoming Budget. This is something the SNP has consistently called for and we are proud to stand behind that campaign with the Deputy First Minister having written to the Treasury last week too."

He went on: "I therefore urge you to use the forthcoming Budget to introduce a 10% VAT rate for hospitality across the UK. I hope you will give this proposal the serious consideration it deserves and commit to reducing hospitality VAT to 10%."

Both letters went to the UK Government, which sets VAT. The Scottish Government cannot change the rate on its own.

The open letter behind it

More than 100 Scottish hospitality figures signed the open letter to First Minister John Swinney on 21 September 2026. Tom Kitchin, Lorna McNee and the Balmoral Hotel in Edinburgh are among the signatories.

The letter also carries Cameron House Resort, Macdonald Hotels, Cromlix, The Torridon, Auchrannie Resort and Kingsmills Hotel. Pub and restaurant groups among the signatories include Greene King, Mitchells & Butlers, Punch Pubs & Co and Signature Pubs.

Kitchin: fantastic to see

Chef Tom Kitchin, a campaign ambassador, said: "It's fantastic to see the Scottish Government and the SNP put their full support behind the #VATsTheProblem campaign and join our calls for hospitality VAT to be reduced to 10%, in line with Europe."

"We saw just last week the enormous support from across Scottish hospitality for a fairer VAT rate for the sector and you only need to look at the 390,000 supporters the campaign has amassed to understand just how many people believe it is necessary to support their local hospitality venues," he said.

He added: "I hope we will see the other political parties in Scotland and MSPs back the campaign, as well as Scottish MPs, to put even more pressure on the UK Government to act."

The ask is a request

The campaign asks for a 10% rate of VAT for hospitality at the Budget. That is a request. No VAT change has been announced.

The campaign says the UK rate stands at 20% and cites 10% in France, Spain and Italy and 7% in Germany. Its own line is that 10% is fair for hospitality.

Who runs the campaign

Chef and publican Tom Kerridge spearheads #VATsTheProblem. The campaign site states that UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and CODE Hospitality support it. It launched to consumers on 1 July and passed 100,000 signatures inside three days, according to the campaign.

The 390,000 figure

Kitchin cites 390,000 supporters. The campaign's own open letter of 21 September 2026 cites more than 380,000 signatures, so the count has moved during the campaign. The figure is the campaign's own running count of petition signatures.

Operators on the ground

Glasgow operator Graham Suttle said a 10% rate would let businesses reinvest in staff and bring more young people into employment. Colin Wilkinson of the Scottish Licensed Trade Association called a VAT cut a start that can be done quickly.

What comes next

Neither letter names a date for the Budget. The SNP and the Scottish Government have asked the UK Government to act. The decision sits with the Treasury.

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