Caterer and Hotelkeeper’s launched its SlashVAT, Boost Business campaign aimed reducing VAT levied on UK hospitality operators from 20% to 5% in 2011.

As part of that campaign we now support the British Hospitality Association’s work with Government to reduce the VAT rate to 5%.

We believe that VAT in the UK is too high at 20%. This country has the third-most uncompetitive VAT rate on accommodation in the EU (after Denmark and Lithuania) and many other countries benefit from significantly reduced rates for their hospitality industries.

Economic studies suggest that a reduction in VAT of 5% on visitor accommodation and attractions could generate an extra 79,000 jobs – a large proportion of which will go to younger workers at a time when one in five 16-24 year olds is out of work.

It would also contribute an additional £2.6 billion to the Exchequer over the next decade.

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

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

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.

To declare your support for the campaign, please sign our online epetition using the button on this page. You can also follow us on Twitter (www.twitter.com/slashVAT), or contact Caterer and Hotelkeeper directly about the issue of VAT by emailing us on slashvat@rbi.co.uk