Chester food and drink firms back bid to keep VAT break as sector recovers from Covid

Hospitality firms have had to adapt to VAT levels being risen from five per cent to 12.5 per cent at the end of September.

The five per cent VAT rate was designed to get hospitality and tourism businesses up and running, with the vast majority having to close for months during Covid lockdowns.

Melt Town.

Currently, it is planned for VAT to return to the pre-pandemic level of 20 per cent in April 2022.

Local businesses say that is too soon, and are backing a national #VATIsEnough campaign to keep rates at 12.5 per cent.

Carl Critchlow, manager of Chester BID, which is backing the campaign, said: "The independent restaurant and café sector has proved itself resilient to the pandemic and Chester’s recognition nationally continues to grow.

Chester Grosvenor tea.

"However, as VAT breaks ended in September, the city’s food and drink businesses will need all the support they can get.

"We need to recognise the impact this has on businesses and as such the BID are supporting the national #VATsEnough campaign call to make the 12.5% VAT rate permanent.

"The hospitality and tourism industry need the opportunity to build their businesses up again, without having to increase prices."

Calum Adams, co-owner, Shrub on Eastgate said: "While we understand the recovery money from Covid must come from somewhere, hiking VAT back to pre-pandemic levels so soon isn’t sustainable for an industry that was hit hard by lockdown measures and ultimately is still dealing with the ramifications.

Hypha chef.

"The sector employs around 10 per cent of the country, many of which are young people. These measures will have a knock-on effect on them. Businesses are going to struggle or have to pass on the costs to their customers."

Chester BID has also launched a food and drink campaign to push Chester’s food and drink scene through any adverse effect of VAT changes.

The city centre currently has over 70 restaurants, 50 bars and pubs and over a dozen independent coffee shops.

Emily Ghazarian, marketing and events for Chester BID, explained: "Chester sits in great stead, reputation-wise; we had the most successful entry in the Michelin guide this year across the North West, with eight restaurants featured and a Michelin star, a green star and a bib gourmand amongst them. The city has also been named the UK City of The Year by the iTravel Staycation Awards.

"We need to continue this momentum – and push Chester as the ultimate destination for a night out or a weekend away – and we hope our campaign can push this message through."

Opera Grill.