Following the closure of Birmingham's oldest Michelin Star restaurant Simpsons last week and a stark warning from the legendary 80-year-old chip shop Bedders that it might have to close after eight decades, a clear theme has emerged in many interviews. Businesses that have either shut down or are on the brink of closure are calling for the same thing: VAT relief.
It is not the 'use it or lose it' message that places the burden on fellow Brummies who cannot afford the soaring cost of eating out. Instead, it is a plea to the government for a VAT reduction that would align with much of the rest of Europe and ease pressure on those trying to keep people fed, watered, and entertained in the city.
Currently, diners pay an extra 20% to eat out in the UK. In Germany, that tax is 7%, and in Italy, France, or Spain, it is only 10%.
Andreas Antona, who opened Simpsons 34 years ago, said that making that change could have made a difference in saving his fine dining restaurant, adding that it would be 'a start' in saving the city from what he predicted could be an 'avalanche' of closures.
At Bedders, owner Ian Simmonds said that while fish, potato, and oil prices were all making life hard, he too felt a VAT reduction in line with Europe would offer 'relief'.
A new campaign, titled 'VATs The Problem', has launched, petitioning the government to consider making this change. At the time of writing, 96,384 had joined the call, including a number of Birmingham businesses.
"Do you want to back your favourite venue, help your high street and support local jobs?" the petition asks. "Then sign our petition to lower the rate of VAT for hospitality to 10%."
"Our pubs, restaurants, cafes, hotels, nightclubs and many more are at the heart of our communities. They bring people together and bring life to our cities, towns and villages, but they're under huge pressure from rising costs."
It adds: "Our message to Government is simple. Let's stand together to say VAT at 10% is fair for hospitality."
In the Mayoral Night Time Economy Commission report launched by Richard Parker last week, the Mayor was called on to 'lobby for fiscal reform for the sector' as part of the strategy to support the city's businesses.
Of the report, Sacha Lord, the chair of the Night Time Industry Association, said: "This report is another major step forward in finally recognising the true economic and cultural value of the night time economy. The recommendations around VAT relief, transport, licensing, planning reform and the creation of a dedicated Minister for the Night Time Economy are exactly the type of interventions the industry has been calling for over many years."
He added: "The ambition in this report is substantial. What matters now is delivery, investment and political commitment. If implemented properly, Birmingham and the West Midlands can become one of Europe's leading night time destinations and a blueprint for the rest of the UK."
The argument is not new. Chef Aktar Islam called for VAT relief when interviewed back in 2023. Back then, Birmingham had five Michelin Star restaurants. Since then, that number has dropped to two with the loss of both Simpsons and Purnell's.
