(Image: TOMMY BANKS/INSTAGRAM)
TV chef Tommy Banks has issued a warning over the future of Britain's pubs and restaurants as he called for a VAT cut ahead of this month's Budget.
The North Yorkshire chef has urged the Government to reduce VAT to 13 per cent for hospitality businesses with a turnover of less than £50 million.
Banks, who runs The Black Swan at Oldstead as well as Roots in York, The Abbey Inn at Byland and The General Tarleton near Knaresborough, made the plea with less than a month to go before Chancellor John Healey delivers his first Budget on Wednesday, October 28.
He said hospitality "needs a VAT cut more than ever" and called on Prime Minister Andy Burnham to act after previously speaking about supporting a lower rate for the sector.
Tommy Banks (Image: TOMMY BANKS/INSTAGRAM)
Banks said: "Before becoming Prime Minister, Andy Burnham spoke about supporting a lower hospitality VAT rate, bringing us closer to our European neighbours.
"Since taking office, he has been worryingly quiet on VAT. I hope he sticks to his word. This Budget will be the test."
The chef is backing a proposal to reduce VAT from its standard 20 per cent rate to 13 per cent for hospitality businesses turning over less than £50 million.
Research carried out by Bournemouth University Business School alongside Hospitality Voices estimates the measure would have a net cost to the Treasury of between £3.2 billion and £3.6 billion a year.
Banks acknowledged that this would be a "significant sum", but argued it should be weighed against the consequences of further hospitality businesses closing.
He said: "My reason for campaigning is to protect jobs and save the smaller businesses that are the lifeblood of our communities.
"That is a significant sum. But it needs to be considered alongside the cost of doing nothing: more closures, more lost jobs and fewer businesses paying tax.
"This could help viable businesses survive, give others the confidence to open, and create meaningful growth."
Banks also highlighted the importance of pubs and other hospitality businesses to rural communities such as those in North Yorkshire.
"Where I'm from, pubs are the beating heart of village life," he said.
"Our pubs, restaurants and cafés shape what our villages, towns and cities look and feel like. Once they're gone, rebuilding them isn't easy."
Banks said the industry was particularly important for younger workers, saying almost 40 per cent of its workforce was aged between 16 and 24.
He added: "These businesses give people their first jobs, teach them skills and offer careers.
"If we're serious about creating opportunities for young people, we need to support the businesses providing them.
"The Budget is only weeks away. If you care about the future of hospitality, now is the time to make your voice heard."
The campaign comes as pressure grows on the Government over the tax burden facing hospitality businesses.
The standard VAT rate remains 20 per cent, while industry groups including UKHospitality have also been campaigning for a permanent reduction in the rate paid by the sector.
The Government has already announced a 20 per cent reduction in business rates bills for pubs, social clubs and live music venues in England from next April.
Chancellor John Healey will set out the Government's wider tax and spending plans when he delivers his first Budget on October 28.