Stephanie Kerr runs the Leamington Business Improvement District (BID) and is also heading up a new Hospitality and Retail Group, alongside the Coventry and Warwickshire Chamber of Commerce.

The group was set up on the back of the Chamber’s research for its Business Manifesto which found urgent action was needed to support the sector.

After it’s first meeting, the group called for a reduction in VAT for the hospitality sector to ten per cent – echoing national calls for a cut to support the industry.

New Prime Minister Andy Burnham has since announced that pubs, clubs and live music venues will receive a 20 per cent cut to their business rates bills, which the Government says will lead to a saving for the typical pub of an estimated £1,100 next year.

But Steph says it doesn’t go far enough for an industry that is seeing businesses close down on a daily basis and that it misses out cafes, restaurants, hotels and leisure venues.

She said: “Firstly, I welcome the fact that our new PM is thinking about the high street, however I’d like to see actions go further and faster. 

“Since the announcement, I have spoken to several businesses in the sector and while they value this gesture, they point out that this help is from April 2027 – which is months away.

“They are looking for help now. 

“We’re losing three businesses per day, including many local examples, and in some cases the 20 per cent reduction doesn’t come close to offsetting the most recent business rate rises, alongside all of the other additional costs to doing business.

“By April next year, we have to be looking at business rates and taxation reform that works across the whole hospitality sector, including cafes and restaurants. This must also extend to the health and beauty and retail sectors in our towns and cities. 

“In the meantime, we maintain our call for a drop in VAT to 10 per cent and would encourage everyone to sign the online petition to support this move. It would align us with the majority of Europe and give breathing room to businesses that are chalking up debts just to keep the lights on.”

Kate Shoesmith, director of policy and insight at the BCC, said: “While news of a carve out for pubs, clubs and music venues is welcome, there are many other smaller hospitality companies facing an existential threat. Meanwhile at the other end of the scale, airports and hotel chains are already paying millions more.  

“The last few years of Brexit, Covid, rising energy bills, wars and other geopolitical crises have pushed costs to record highs and these show no signs of waning.  

“Our latest research shows more than a third of firms believe business rates are of more concern now than they were three months ago. 

“And this anxiety is felt more sharply in some sectors, with more than half of hospitality business, and two fifths of manufacturers and transport firms fearing the worst. 

“Any action on rates is long overdue and very welcome, but root and branch reform of the system was a Labour manifesto commitment, and it is time to deliver on that promise. 

“A step-by-step action plan is required. First, the government must mitigate the steep jumps in bills across all sectors caused by the 2026 revaluation. That means introducing a single flat rate multiplier and making bills easier to understand.   

“This shift should then jumpstart a more rigorous consultation with business on how to fully reform what is a complex and rigid system.  

“The time for tinkering round the edges has long gone. What firms of all shapes and sizes need to see is a new plan for fair and proportionate business rates set out at the Autumn Budget. We stand ready and willing to help inform those plans.” 

For more information and to back the campaign to reduce VAT for the hospitality sector go to https://www.vatstheproblem.co.uk/ 

For more information on the Chamber’s hospitality and retail group, the Chamber’s manifesto and its Business Assembly, contact [email protected]