Sysco GB has written to the Chancellor of the Exchequer to formally support campaigns to reduce VAT for hospitality businesses from 20% to 10%, #VATsTheProblem, and to reject the proposed visitor levy in England, backed by UKHospitality (UKH). 

In the open letter, Sysco outlines the significant cost pressures facing hospitality operators, including rising labour costs, energy prices, business rates and wider operating expenses, and highlights the impact these challenges have on businesses of all sizes. The company notes that these pressures extend throughout the food and drink supply chain, affecting wholesalers, producers, manufacturers and farmers. 

Serving tens of thousands of restaurants, pubs, hotels, cafés and caterers each week, Sysco says it sees first-hand the pressures facing operators. Rising labour costs, energy prices, business rates and wider operating expenses continue to challenge businesses of all sizes, with knock‑on effects across the food and drink supply chain. 

Sysco is therefore backing a call for a reduction in hospitality VAT to 10%, supported by UKH, arguing that aligning the UK more closely with European rates would help restore confidence, stimulate investment and support employment across the sector. The business also shares UKH’s concerns about the introduction of a visitor levy, warning that additional taxes on overnight stays risk reducing domestic tourism, weakening local economies and affecting restaurants, pubs, cafés, attractions and the suppliers that support them. 

Paul Nieduszynski, CEO, Sysco GB said: “Hospitality is one of the UK’s most important economic sectors, employing around 3.5 million people, driving tourism, helping to sustain high streets and supporting thousands of businesses across the food supply chain. Reducing VAT and rejecting a visitor levy would send a clear signal that the Government is committed to backing this vital industry. These measures would help restore confidence, encourage investment and ensure hospitality can continue playing its essential role in communities and in the wider UK economy.” 

Sysco has offered to engage with Government on how hospitality, foodservice and wholesale can contribute to national economic growth.