UK hospitality businesses currently operate at a significant disadvantage compared to their European counterparts. A 20% VAT rate takes a substantial cut from revenue that could otherwise go back into people, quality and growth. In much of Europe, that rate sits closer to 10%, giving restaurants, venues and catering companies far more room to invest, hire and build.
This is not just about margins. It is about the entire ecosystem that hospitality supports: the chefs, the event coordinators, the front of house teams, the local suppliers, the communities that depend on hospitality as a genuine route into employment.
Rising operating costs over recent years have made this imbalance even harder to absorb. Energy prices, supply chain pressures, increased wages and the ongoing challenge of recruitment have all squeezed businesses that were already working within tight parameters. A structural reduction in VAT would offer genuine, lasting relief rather than short term measures that do not address the root of the problem.
MyLahore’s Support for the VATsTheProblem Campaign
Shakoor Ahmed, Managing Director of MyLahore, put it clearly:
“Hospitality is one of the UK’s largest employers and a vital part of every town and city centre. Restaurants, cafés, hotels, event venues and caterers create jobs, support local suppliers and bring people together.”
“Like many businesses across the sector, we have faced significant increases in operating costs over recent years. A reduction in VAT would provide meaningful support and allow businesses to reinvest in their teams, create opportunities for young people, improve customer experiences and continue contributing to local economies.”
With nearly 25 years of trading history, the MyLahore group has grown from a small Bradford kitchen into one of the North’s most recognised hospitality names, employing hundreds of people and serving communities across Yorkshire, Lancashire and the Midlands. That kind of growth comes from genuine commitment, not just to great food and exceptional events, but to the people and places that make the North what it is.
Being named Best Caterer 2025 at the Asian Food and Restaurant Awards was a proud moment for the whole group. But what drives us day to day is the ability to keep building something that genuinely serves our communities, and to do that well, the business conditions have to be fair.
Joining this campaign is a natural step for a group that has always believed hospitality is worth fighting for.
What a Fairer VAT Rate Could Unlock
A cut from 20% to 10% is not just a financial adjustment. It is a signal that the government values what hospitality contributes to the country. Here is what that kind of change could meaningfully unlock across the sector:
- Investment in recruiting and retaining skilled hospitality staff at every level
- Better training programmes and clear career pathways for young people entering the industry
- Stronger relationships with local suppliers, producers and independent food businesses
- Greater capacity for community work, fundraising events and charitable partnerships
- More stable and sustainable pricing for families and individuals booking events and celebrations
For a business like ours that plans weddings, manages corporate events and fundraisers and delivers catering across the UK, operating costs are real and constant. A lower VAT rate would allow more of what the business earns to flow back into the things our clients and our team genuinely deserve.
Hospitality and Community Cannot Be Separated
At By MyLahore, we have always understood that the business and the community it serves are not separate things. You can read more about how that plays out in practice on our community work section, but the essence of it is this: we show up for the people around us because it is the right thing to do.
We deliver meals to NHS teams at local hospitals. We work with food banks and community kitchens to make sure good food reaches those who need it most. We partner with local faith groups and charities, providing subsidised or complimentary venue hire for fundraising events because we know that access to space is just as important as access to food.
That community commitment is only possible when the business behind it is sustainable. The VAT burden does not just affect profits. It affects how much of ourselves we can give back, and how far our generosity can actually reach. A fairer tax environment is good for operators, yes. But it is equally good for every community that depends on what hospitality makes possible.
How to Get Behind the VATsTheProblem Campaign
