One of London’s best-known LGBTQ+ venues has warned that rising costs and tax pressures are putting hospitality businesses at risk, as it joins a growing campaign calling for a cut to VAT.
Heaven nightclub in central London has thrown its support behind the VAT’s The Problem campaign, led by chef Tom Kerridge, which is urging the government to reduce VAT for hospitality to 10%.
In a statement shared on social media, Heaven and its owner Jeremy Joseph said the sector was facing mounting financial strain. “VAT is crippling us,” the venue said, adding that it faces an average monthly VAT bill of around £60,000.
The club said the tax burden was compounded by a series of rising costs across the industry, including business rates, increases to the minimum wage and National Insurance contributions, and higher rents.
“Nightclubs, bars, pubs, restaurants and cafes are all being affected,” the statement said. “We can’t tell you how damaging VAT is to hospitality.”
The campaign, which has attracted growing support from venues across the UK, argues that the current 20% VAT rate places British businesses at a disadvantage compared with European countries. Campaign materials note that comparable rates are lower elsewhere, at around 10% in countries such as France, Spain and Italy.
Supporters say the hospitality sector plays a central role in local communities, providing jobs and social spaces, but is now under increasing pressure from rising costs.
Heaven said it backed the campaign “100%” and called on the government to take action to protect venues. “It’s time for the government to do something,” the statement said. “Please sign the petition and not just support, but protect our venues.”
The campaign’s petition has already attracted significant backing, with more than 170,000 people signing up in support of calls to reduce VAT for hospitality businesses.
Organisers say the aim is to help venues remain viable and continue contributing to the social and economic life of towns and cities across the UK - including LGBTQ+ spaces such as Heaven, which have long played a key role in community life.
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