A new petition has opened today calling on the government to amend VAT policy to allow hospitality businesses to reclaim 10% of their food costs against their quarterly VAT bill.
The proposal is positioned as an alternative to a permanent reduction in the 20% VAT rate, which industry efforts have so far failed to secure. Organisers of the petition argue the measure would help businesses remain viable, protect jobs and support local communities, potentially supporting thousands of independent venues.
The petition states: “Allowing hospitality businesses to reclaim 10% of their food costs against their 20% VAT liability could help hospitality face a more sustainable future, which can lead to growth. We believe it could stabilise thousands of independent venues which are at risk, and could prevent closures, which are damaging to local high streets & tourism. We believe this targeted support is simple to administer and directly strengthens struggling businesses without broad fiscal overhaul.”
Under the proposal, a new box would be added to the VAT return for a “10% food-cost credit”, calculated as 10% of net qualifying food purchase invoices for the period. This credit would directly reduce VAT due. Qualifying purchases would need to be supported by supplier invoices and a simple cost-centre code, with safeguards to prevent double-counting where input VAT has already been reclaimed.
An accompanying campaign website tenpercentchance.co.uk argues the model is simple to administer and delivers “immediate margin relief to existing hospitality businesses without altering the headline VAT regime” while keeping administration “light and auditable”.
The petition requires 10,000 signatures to receive a government response and 100,000 signatures to be considered for debate in Parliament. It will run for six months, closing on 13th July 2026.
To sign the petition click here.
