The recent closure of Birmingham’s oldest Michelin-starred restaurant, Simpsons, coupled with warnings from Bedders—the city’s legendary 80-year-old chip shop—highlights a growing crisis in Birmingham’s hospitality scene. Businesses both upscale and humble are facing immense pressure and all share the same urgent request: government intervention through VAT relief.
Contrary to popular slogans urging locals to ‘use it or lose it,’ most struggling operators acknowledge that rising dining costs are affecting everyone, including their potential customers. These businesses aren’t asking for more footfall by appealing to cash-strapped residents; instead, they want the government to reduce the Value Added Tax levied on eating out, aligning the UK with more competitive European rates.
Currently, diners in the UK pay a hefty 20% VAT when eating out. This is far higher than Germany’s 7% or the 10% charged in Italy, France, and Spain. Andreas Antona, founder of Simpsons, reflected that a VAT cut might have helped save his fine dining establishment and believes it would be “a start” to stem what he fears could be a wave of upcoming closures.
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Bedders’ owner Ian Simmonds echoes this sentiment, adding that rising costs for staples like fish, potatoes, and cooking oil are making operations increasingly difficult. He, too, insists that a VAT reduction aligned with Europe would provide critical relief.
A new campaign, aptly named ‘VATs The Problem,’ has been launched to lobby the government for this change. As of writing, the petition has amassed nearly 100,000 signatures, including support from numerous Birmingham businesses. The campaign calls on the public to support local venues, saying: “Sign our petition to lower the rate of VAT for hospitality to 10%. Our pubs, restaurants, cafes, hotels, and nightclubs bring life to our communities but are under huge pressure due to rising costs.”
The recent Mayoral Night Time Economy Commission report also urges fiscal reform for the hospitality sector. Sacha Lord, chair of the Night Time Industry Association, praised the report’s recommendations on VAT relief, improved transport, licensing, and planning reforms, emphasizing that these measures are long overdue.
Lord added: “If implemented properly, Birmingham and the West Midlands could become one of Europe’s premier night time destinations and serve as a model for the rest of the UK.”
This call for VAT relief is not new. Chef Aktar Islam voiced similar concerns in 2023, when Birmingham boasted five Michelin-starred restaurants. Since then, the number has dwindled to two, following the losses of Simpsons and Purnell’s—a stark indicator of the sector’s fragility.
As chip shops and fine dining establishments stand side by side in this fight, it is clear that Birmingham’s hospitality industry needs urgent government support to survive and thrive in the years ahead.