Martin has pledged to raise urgent concerns with the Chancellor, Rachel Reeves, following a visit to local tourism and hospitality businesses struggling under what they describe as an increasingly unequal tax and policy environment.
During the visit, Mr Vickers met with representatives from Healing Manor Hotel and Stallingborough Grange Hotel to hear first-hand how recent government policy changes are impacting the sector.
Local businesses outlined the severe pressures they are facing, including rising costs, increased regulatory burdens, and what they say is a fundamentally unfair VAT system that puts UK hospitality businesses at a disadvantage both domestically and internationally. Hospitality venues currently pay 20% VAT on food and drink served on premises, while supermarket food is zero-rated and many European countries apply significantly lower rates, creating what industry leaders describe as a distorted playing field.
Business owners also highlighted the cumulative impact of multiple cost pressures, with one briefing identifying 68 separate taxes, levies and regulatory burdens affecting hospitality businesses simultaneously, placing many operators “on the brink.”
Following the visit, Martin not only committed to raising the issue with the Chancellor but also took the matter directly to the floor of the House of Commons. During Business Questions with the Leader of the House on Thursday, he highlighted the concerns of local hospitality businesses and pressed for greater recognition of the challenges facing the sector.
Speaking after the visit, Martin Vickers MP said: “It was extremely valuable to meet with local employers at Healing Manor and Stallingborough Grange to listen directly to the challenges they are facing. These are well-run businesses that play a vital role in our local economy, supporting jobs, tourism and the wider community.
“However, they are being placed at a clear disadvantage by the current VAT regime and the cumulative burden of taxation and regulation. It simply cannot be right that hospitality is taxed at 20% while comparable products are treated differently, both here in the UK and abroad.”
Martin added:
“What I heard clearly is that this is not about a single tax or cost—it is the cumulative effect of multiple pressures all hitting at once. That is putting viable businesses at risk and threatening the future of our local visitor economy.
“That is why I raised this issue in the House of Commons this week, and I will now be taking it directly to the Chancellor. We need a fairer system that supports growth, jobs and investment—not one that puts UK businesses at a structural disadvantage.”
Local operators emphasised that without meaningful change—particularly around VAT—many independent venues may be forced to scale back or close altogether, with significant consequences for the local economy, employment, and community life.
