Conor McCarthy, Co-Founder and CEO at restaurant AI technology leader Flipdish had this to say on what a potential Burnham government could mean for the hospitality industry:

“If Burnham becomes Prime Minister and follows through on his promise to reduce hospitality VAT to 10%, it would be a meaningful and material boost for the sector. It creates immediate headroom for operators, supports employment, and reduces the pressure to pass costs on to consumers.

Hospitality is operating under sustained cost inflation across wages, energy, rents, business rates, and supply chains. Many viable businesses are not constrained by demand or by skill, but by unsustainable margins.

A VAT reduction will not solve every structural issue, but it is one of the most direct levers the government can pull to provide fast relief. The priority then is certainty. Implement it, commit to it, and give operators the confidence to plan and invest over the next 12 to 24 months.”