Caterer and Hotelkeeper has launched a major new campaign - SlashVAT, Boost Business - aimed reducing VAT levied on UK hospitality operators from 20% to 5%.

Economic studies suggest that such a move could create as many as 310,000 new UK jobs, raise additional tax revenue, and reduce fraud.

We believe that VAT in the UK is too high at 20%. It is the second-most uncompetitive rate in the EU (after Denmark) and many other countries benefit from significantly reduced rates for their hospitality industries. In fact, the average across our major competitor nations such as: France, Spain, Italy and Germany is just 7.6%.

In August 2010 Prime Minister David Cameron proclaimed that the tourism and leisure industry was "essential" to rebuilding the economy.

And it was only in October of last year that the newly appointed pubs minister Bob Neill said he was "determined to protect the valuable role pubs play and help them to thrive".

Despite that, the Government still put VAT up by a full 2.5 percentage points in January 2011.

Since then, it has been a long, hard slog for many businesses. Official figures showed that UK economic growth was just 0.5% in the first three months of the year, while consumer spending dropped 0.6% over the same period. Meanwhile food inflation is running at almost 5%, posing problems for restaurants and caterers trying to keep hold of their cash-strapped customers.

If restaurants, hotels, pubs and caterers are surviving or even thriving, it is in spite of the Government and its VAT increase, not because of it.

That is why Caterer and Hotelkeeper will champion the industry's views on VAT with the Slash VAT, Boost Business campaign.

Over the coming months, we will work to:

• Highlight why VAT at 20% is so uncompetitive for the UK both in the pages of Caterer and Hotelkeeper and on our website at www.catererandhotelkeeper.com/slashVAT.
• Demonstrate how a reduced rate could benefit this sector as well as the economy as a whole.
• Determine the most realistic level of VAT for hospitality businesses on the basis of research, Caterer surveys and collaboration with industry bodies like the BHA.
• Provide a platform for you to share your views on the issue, within a dedicated channel on our Table Talk forum, through our dedicated campaign e-mail address (slashvat@rbi.co.uk), or on Twitter (www.twitter.com/slashVAT).
• Create an online petition to present hospitality's views on VAT to Government.