More than 800 hospitality businesses have pressed Prime Minister Andy Burnham to deliver hospitality VAT cut demands, as new figures show three firms in the sector have been closing every day since the start of 2026, according to research from UKHospitality cited by the Institute of Hospitality.
The appeal, reported by the Morning Advertiser, calls on Burnham to implement a 10% VAT rate for the sector. The push from industry comes days after the prime minister handed local authorities the power to impose unlimited tourist taxes, a move the Daily Telegraph reported had ‘blindsided’ the sector.
Tourist tax adding £1.6bn burden, says hospitality sector
The decision to let local leaders levy unlimited tourist taxes would saddle businesses with an extra £1.6bn in costs, according to The Telegraph. The Daily Telegraph reports that hospitality bosses are now calling on Burnham to offset that pressure with a VAT reduction.
The shadow chancellor, Andrew Griffith, warned in the Daily Express that a new charge on overnight stays could ‘crush’ family-run seaside bed and breakfasts. The government, for its part, says visitor levies will be set as a percentage of accommodation costs, ensuring low-cost holidays will stay low.
The hospitality VAT cut demands are set against a backdrop of sustained pressure on the sector, with the closure rate cited by UKHospitality underlining the scale of strain on pubs, hotels and restaurants across the country.
Reform row, Ukraine attack and Trump’s AI stance dominate front pages
Elsewhere in Monday’s papers, The Times reports that Reform UK has accused Labour of threatening the rule of law after cabinet minister Angela Rayner suggested the party could be forced to return £72m donated by two crypto billionaires. Reform spokesman Zia Yusuf is quoted as saying that applying new restrictions retrospectively would amount to confiscating donations that were lawful when received. The Daily Mirror says the windfall ‘seems like a gift from heaven but could be a poisoned chalice’ for the party, arguing that ‘taking millions from crypto billionaires sits awkwardly with Nigel Farage’s man of the people schtick’.
The Sun leads on Sunday’s Russian attack on a rail station in Ukraine, which took place shortly after the former prime minister Boris Johnson had passed through. Johnson, writing in the Daily Mail, accuses President Vladimir Putin of getting ‘absolutely desperate’, describing the strike as illustrating the ‘bared teeth of a cornered rat’. The paper reports Johnson was travelling close to the Polish border when the service behind his was struck.
On the international stage, the Financial Times leads on comments by President Donald Trump, who rejected growing calls for restrictions on the growth of artificial intelligence. The paper describes a ‘rare show of unity’ from AI leaders calling for a more cautious pace of development, but says Trump stressed it was imperative for the US to retain its international leadership in the field. The Guardian says Trump ‘appears reluctant to confess to any AI fears’, with ‘losing to China’ the bigger concern in his ‘calculus’.
The Daily Telegraph also features the hospitality VAT cut demands prominently, with industry figures warning that without relief on tax, the closure rate flagged by UKHospitality is likely to continue.
