“We’re not asking for handouts. We’re asking for a fair chance to thrive.”
The owner of one of Harrogate’s popular independent hospitality venues is calling for greater support for the sector, warning that rising costs and the UK’s VAT burden are putting pressure on businesses that play a vital role in communities across the country.
As part of Harrogate BID’s campaign to celebrate and support the town’s hospitality scene, BID Chair and Starling owner Simon Midgley is helping to raise awareness locally of the challenges facing the sector.
The campaign, delivered in collaboration with Your Harrogate and Gem @YorkshireIndie, is shining a spotlight on the people and businesses behind Harrogate’s hospitality scene, showcasing the venues that make the town such a vibrant place for residents and visitors.
Alongside celebrating the strength and variety of Harrogate hospitality, the campaign is also supporting the national VAT’s The Problem campaign, which is calling on the Government to reduce VAT for hospitality businesses from 20% to 10%.
Simon said:
“Starling is busy, we’re doing well and we have ambitious plans for the future but the reality is that the cost pressures and tax burden facing hospitality businesses are enormous. Even successful businesses are finding it increasingly difficult to make the numbers stack up.
“We want to invest, create jobs and grow, but where is the incentive to take that risk when costs continue to rise and margins continue to be squeezed?”
Simon believes the debate extends far beyond individual businesses.
“Hospitality is one of the most important parts of our social fabric. These venues aren’t just places to eat and drink. They’re where people meet friends, celebrate milestones, build relationships and feel part of a community.
“For many villages, the local pub is the last remaining social hub. In towns and cities, cafés, restaurants and bars create spaces where people come together. If it becomes increasingly cheaper to buy food and drink from supermarkets and stay at home, we risk losing something incredibly valuable.
“Supermarkets do not pay VAT on the food they sell and have the buying power to sell alcohol at close to cost, it’s simply not a level playing field.”
The hospitality sector is also one of the UK’s largest employers and provides important opportunities for younger people entering the workforce, Simon added.
“Hospitality gives many people their first experience of work. It develops confidence, communication skills and employability. If we continue to suppress the sector, there is a real danger of a knock-on effect on jobs, opportunities and local economies.
“Once these businesses are gone, they’re incredibly difficult to replace. That may sound dramatic, but that’s genuinely where many operators feel we are heading.”
At Starling, the impact of the business extends far beyond food and drink.
The venue hosts regular community events, four book clubs, a weekly charity quiz and fundraising activities, supports local charities and provides opportunities for placement students from organisations including Henshaws and Harrogate Skills 4 Living.
Simon also volunteers his time as Chair of Harrogate BID, helping support local businesses and promote investment in the town.
“Successful hospitality businesses create value far beyond their own four walls. We support charities, create jobs, provide social spaces and contribute to the wider local economy.
“The more successful we are, the more we can give back. We want to do more for our community, not less.”
While acknowledging that VAT reform is not a complete solution to the challenges facing the sector, Simon believes it is one practical step the Government could take quickly.
“We’re not asking for special treatment. We’re asking for a fair chance to thrive, invest and continue contributing to our communities.
“Hospitality businesses have shown incredible resilience over the last few years. A reduction in VAT would send a clear signal that the sector matters and that the Government recognises the economic and social value we bring.”
Harrogate BID is supporting the VAT’s The Problem campaign as part of its ongoing work to champion hospitality businesses and highlight the vital role they play in making Harrogate a thriving town centre.
The VAT’s The Problem campaign is calling for a reduction in VAT for hospitality, leisure and tourism businesses as part of wider efforts to support the long-term sustainability of the sector.
Sign the petition here: https://www.vatstheproblem.co.uk/