The UK's current 20% hospitality VAT rate is one of the highest hospitality VAT rates in Europe. Every pound taken over the counter carries a VAT obligation that an independent operator at three percent net margin is working significantly harder to absorb than a chain with three times the margin headroom.
The UK hospitality sector has a 52% staff turnover rate. This is not a staffing crisis. It is the bill arriving for thirty years of treating people as a cost.
