Thursday, October 8, 2026 Hotel Tribune News and analysis for the trade
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Two Scottish letters press the case for a 10% hospitality VAT rate

Jenny Gilruth writes to the UK Government and Calum Kerr writes to the Prime Minister, both asking for a 10 per cent hospitality VAT rate at the Budget.

The Scottish Government and the SNP have backed the #VATsTheProblem campaign, which asks for a 10 per cent rate of VAT on hospitality. Deputy First Minister Jenny Gilruth wrote to the UK Government. Calum Kerr MSP wrote to the Prime Minister on behalf of the SNP.

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

The two letters

Gilruth wrote to the UK Government and urged it to listen carefully to the sector's calls. Kerr wrote to the Prime Minister on behalf of the SNP. Both letters carry one ask: a 10 per cent VAT rate for hospitality 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%."

The UKHospitality copy gives the Deputy First Minister as Jennifer Gilruth. The Scottish Government lists her as Jenny Gilruth, Deputy First Minister and Cabinet Secretary for Finance and Local Government.

The open letter and its signatories

The open letter is dated 21 September 2026 and addressed to First Minister John Swinney. It is published in full on the UKHospitality site. It asks the Scottish Government to back a 10 per cent rate and to write to the Chancellor of the Exchequer and the Treasury.

The letter lists its signatories alphabetically by business name. They include the Balmoral Hotel in Edinburgh, Cameron House Resort, Macdonald Hotels, Cromlix, The Torridon, Auchrannie Resort and Kingsmills Hotel. Tom Kitchin of the Kitchin Group and chef Lorna McNee of Cail Bruich are on the list. Pub and restaurant groups on it include Greene King, Mitchells & Butlers, Punch Pubs & Co, Signature Pubs and Glendola Leisure Group.

The signature count

Kitchin's statement puts the campaign at 390,000 supporters. The campaign's own open letter of 21 September 2026 cites more than 380,000 signatures. The campaign carries the figure as its own signature count and not as an audited total.

The campaign

Chef and publican Tom Kerridge leads #VATsTheProblem. The campaign site names UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and CODE Hospitality as supporters. It states the UK rate at 20 per cent and gives 10 per cent for France, Spain and Italy and 7 per cent for Germany.

The ask

The campaign asks for a 10 per cent rate of VAT for hospitality at the Budget. No rate change has been announced, and neither letter names a Budget date. Both letters went to the UK Government, which sets VAT. The Gilruth letter and the Kerr letter are carried through the UKHospitality copy and the trade press.

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