Newquay BID Supports Call for Fairer Tax System for Hospitality

Newquay BID has joined the Taxed Out campaign launched by Hospitality UK, warning that the current tax system is putting family-run cafés, bars and restaurants at risk of closure.

With many businesses already struggling under high costs, the 20% VAT rate on food sales has been singled out as a major barrier to survival. Unlike supermarkets, which pay no VAT on food, hospitality businesses are forced to charge higher prices, making it harder to compete.

The pressure on Cornwall’s high streets

In a town like Newquay, businesses rely heavily on the summer season to cover the costs of staying open through winter. The current tax structure, according to Newquay BID, not only creates unfair competition but also threatens the future of high streets across Cornwall.

Mark Warren, Newquay BID Manager, said:
“We have some of the most resilient, hardworking businesses in the country right here in Newquay – many are family-run and open all year round. But this 20% tax is crippling. It’s not sustainable to expect hospitality to carry this burden while supermarkets remain exempt. If nothing changes, we will sadly see more businesses forced to close their doors.”

Keren Cooksey, Falmouth BID Manager, added:
“Falmouth, like Newquay, relies heavily on a vibrant hospitality sector to support both residents and visitors year-round. Our independent cafés, bars, and restaurants are at the heart of our high streets here in Cornwall, yet they face an unfair tax burden that threatens their survival. Without change, we risk losing the very businesses that make our towns vibrant and distinctive.”

📷MArk Warren

Taking the fight to government

Newquay BID has written to local MP Noah Law and plans to meet with him to bring the concerns of business owners directly to central government. Noah Law has previously raised the VAT threshold issue in a Written Parliamentary Question to the then Exchequer Secretary James Murray MP.

Mark Warren said:
“The government cannot ignore this any longer. If we want thriving town centres and year-round tourism, the playing field must be levelled. Without reform, many businesses will simply not survive.”

The Taxed Out campaign is pushing for:

• A reduction in business rates

• A fairer fix for national insurance contributions

• A cut in VAT for hospitality

• The reversal of the employer national insurance increase introduced by Rachel Reeves’ recent budget

Mark added:
“This is about standing together as an industry to make sure the voices of hospitality businesses are heard. Reversing these decisions would help protect jobs and safeguard many businesses already under pressure.”

Cornwall joins forces

BIDs across Cornwall, including Newquay and Falmouth, are working collectively to highlight the issue, while British BIDs is championing the campaign at a national level to ensure the concerns of hospitality businesses are heard across the UK.

Several businesses in Newquay have already contacted Newquay BID to share their experiences, which are now being represented locally and nationally.