THE RED WALL TAX
Working with businesses across the country, we champion British hospitality
About the campaign
On October 1 the Government increased VAT on hospitality from 5% to 12.5%, despite concerns voiced by the sector. On 1 April 2022 the Government will introduce a second VAT hike, a Red Wall Tax, taking it to 20%.
Hospitality has been the sector hit hardest by the pandemic, losing £80.8bn in the first 12 months of the pandemic . Even now its revenue is still almost a third lower than it was before the Covid-19 pandemic struck. Leading hospitality sector bodies, including UKHospitality and British Beer and Pub Association, are calling for the Government to shelve plans to introduce a second VAT rise in April 2022 as the sector is not yet strong enough to cope with the pressures that this will bring.
This tax rise will have a disproportionate impact on people living in Red Wall constituencies (which have a higher proportion of hospitality businesses than the national average), will hurt the poorest 10% 3x more than it will hurt the richest 10%, and risks derailing hospitality's ability to contribute to the UK's recovery.
Our campaign will spread the word about yet another planned tax rise on working people and build a movement fit to fight future tax rises.