Bournemouth businesses call for cuts to VAT rates

Businesses are calling for a cut to VAT rates for food-based hospitality following the 2025 Labour budget.

Hospitality workers have launched a number of national petitions calling for Labour to slash business rates by 20%, which they say would massively boost profits and make the expectations on these businesses more realistic.

Cafe owners in Bournemouth have said the relief for businesses offered during the pandemic temporarily relieved the high tax burden on small businesses.

Adam Lowe is one of the owners of Pastuzo’s Local, a family business in Upper Parkstone ran by two brothers.

Pastuzo’s opened last month, and as well as selling food, the business also makes its own clothing.

Adam said: “It is early days and we are not sure whether people really know we are here yet, but we hope the footfall will increase, and really all this about business rates is a big learning curve for all of us as we start out and learn lessons from the people who came before us.

“We’re still learning bits as we go, and it is a lot to get your head around, but of course there are good reasons why hospitality is not doing as well as it could be.

“It is a weird time for hospitality and we debated whether now was the right time with everything going on. We have worked every day for the last couple of months to make it work.”

Paitin Du Plooy runs the Westbourne branch of Big Wigs Bakery, a small chain of cafes split across Bournemouth and Christchurch.

“Businesses did really well during COVID when that relief was given. It just means that earnings would be up so you can increase staff wages and make improvements to the business.

“Business rates are expensive. Rate is expensive. Those prices means cutting corners on wages and finding money in little places.”