11th June 2026
VAT Is the Problem: Why Kent's Hospitality Sector Needs Support
Hospitality is the UK’s third largest employer. Creating careers, supporting communities, driving tourism, filling our high streets and generate billions for the economy. Yet we continue to operate with one of the highest hospitality VAT rates in Europe. Currently on average 3 hospitality venues in the UK are closing every Day – let that one sink in a moment
From bustling seaside towns and historic city centres to rural pubs, hotels, restaurants and visitor attractions, hospitality is one of Kent's most important industries.
The county's hospitality sector plays a vital role in supporting local communities, creating jobs, attracting visitors and driving economic growth. Yet despite its importance, businesses across the sector are facing unprecedented financial pressures.
The challenge facing hospitality today isn't a lack of demand. People still want to visit pubs, enjoy meals with family and friends, stay in hotels, attend events and explore everything Kent has to offer.
The challenge is the rising cost of delivering those experiences.
A Cornerstone of Kent's Economy
According to UKHospitality, Kent's hospitality sector supports more than 89,000 jobs and contributes approximately £2.3 billion to the local economy every year.
Behind those figures are thousands of businesses employing local people, working with local suppliers and helping to sustain vibrant high streets, tourism destinations and communities.
Hospitality is often one of the largest employers in local areas, providing opportunities for young people entering the workforce, flexible employment for many and long-term careers for skilled professionals.
The sector's success creates a ripple effect across the wider economy, supporting farmers, food producers, brewers, transport providers, tradespeople, event organisers and countless other businesses.
Growing Costs Threaten Growth
While hospitality businesses remain resilient, the financial challenges they face continue to intensify.
This is why the hospitality sector is coming together behind a simple message:
VAT is the problem.
The #VATsTheProblem campaign is calling on the Government to reduce hospitality VAT from 20% to 10%.
This is not a request for special treatment. It is a call for a fairer tax environment that reflects the economic and social value hospitality delivers.
A reduction in hospitality VAT from 20% to 10% would be one of the most significant measures the Government could introduce to support growth, protect jobs and secure the future of one of Kent's most valuable sectors.
That is why businesses, employees, suppliers and customers across the country are backing the #VATsTheProblem campaign.
Because supporting hospitality isn't just about supporting businesses.
It's about supporting jobs, communities, local economies and the future prosperity of Kent.
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