Chef Argues Business Rate Relief Falls Short for Restaurants
A Michelin-starred chef argues that while some businesses benefit from government relief, restaurants and other hospitality venues require VAT reductions to remain viable.
Alex Claridge, owner of The Wilderness restaurant in Birmingham, has stated that recent government business rate relief measures do not go far enough to support the hospitality sector. While pubs, clubs, and live music venues are included in the relief package, restaurants, cafes, hotels, and cinemas have been excluded.
Claridge believes that a reduction in Value Added Tax (VAT) for hospitality businesses would provide a more substantial and impactful benefit than changes to business rates. He argues that such a measure would offer businesses the necessary financial flexibility to invest in their operations, hire staff, and ensure their long-term sustainability.
"It's the only lever that will reliably make a difference to a material number of businesses," Claridge stated. He acknowledged potential government apprehension towards such a significant policy change but emphasized the urgency of the situation, suggesting that the current moment calls for "a bold, radical move." He posed the question, "For me, it's always been not can we afford it, but can we afford not to."
The chef expressed concern that the challenges facing the hospitality industry cannot be resolved by short-term solutions alone. He warned that without broader reforms, there is a risk of further independent venues closing. Claridge described the reality of running such businesses, noting, "It is not a get rich quick scheme... It is often a get poor quick scheme as it happens." He stressed the need for the financial realities to be logical, adding, "Make the maths math."