VAT's The Problem
26 June 2026
James Clay and Sons are happy to announce our support for the VAT's The Problem campaign, aiming to support the hospitality industry across the country by cutting the VAT rate for the sector to 10%.
As a direct supplier to this sector, we feel the knock on effects of the enormous cost pressures that the On Trade are under. With margins being eroded, it's increasingly difficult for publicans to have the headspace to think more creatively about their offering, and to take on the risk of serving up something different to the norm.
Our entire business is focused around a vision to create a beer world where quality and culture thrives, and we are determined to do everything within our power to support our customers in fulfilling this.
'Running my own pub and restaurant in the early 80s was the trigger that swiftly led to the formation of James Clay & Sons. I am not sure that making that step would have been possible under today's squeezed margins in the On Trade.'
Ian Clay, Founder, James Clay and Sons
More importantly, we are passionate consumers too, and it is truly painful to watch the continuing trend of venues closing in the UK. These aren't just numbers on a balance sheet, these are treasured community spaces, and a central pillar of our country's culture.
'Hospitality isn’t just an industry — it’s where friendships are built, ideas are shared, and communities come together. When it’s thriving, society feels better for it. We believe in a world where quality beer and culture thrives, but that requires an environment that supports pubs, bars and restaurants — not one that taxes them as heavily as the UK currently does compared to much of Europe'
Ian Clay, Founder, James Clay and Sons
We're also acutely aware of the weight of the UK hospitality industry's tax burden as compared to that of our colleagues on the continent. In Germany the applicable VAT rate is 7%, and in Belgium it is 12% (recently rising from 6%, amid outrage). It is plainly evident that businesses in countries across Europe with a fairer tax system have been able to weather the difficulties of the past few years more steadily.
We would encourage you to support the 'VAT's The Problem' campaign too, and you can follow the link below to learn more, access assets for the national campaign launch on July the 1st, and to sign the petition to bring this to the attention of the government too.