ROCKWATER boss Luke Davis has said it is “imperative” the government lowers VAT for the hospitality industry. 

The chief executive of the firm, which has venues in Branksome and soon Sandbanks, urged the chancellor Jeremy Hunt to drop it from 20 per cent to five per cent. 

Earlier this week, ONS data estimated the UK’s economy fell into recession during the final three months of 2023. 

Gross domestic product (GDP) fell by 0.3 per cent in the fourth quarter, following a decline of 0.1 per cent in the previous three months. 

Bournemouth Echo: Residents have raised concerns over noise should Rockwater receive permission to extend its

But Mr Davies said as the spring budget approaches in early March, a VAT cut will be “crucial” to his sector’s survival. 

“Restaurants, pubs, bars, and hotels form part of the social glue that binds communities in towns and cities together,” he said. 

“They provide important local social facilities, attract visitors, deliver employment, and have a real impact on the identity and vibrancy of our rural and urban communities.  

“It’s imperative that hospitality businesses are viable today, tomorrow and for years to come so our communities can come together.” 

Bournemouth Echo: Chancellor Jeremy HuntChancellor Jeremy Hunt (Image: Contributed)

Mr Davis is not the only businessman in the area to be calling for a cut in VAT. Andy Lennox, who runs Dorset's Nusara restaurants, called for it to be halved to 10 per cent. 

Rockwater’s boss said there are a number of benefits to be had from lowering VAT for hospitality. 

He said: “Firstly, dining out, hotel stays and entertainment would become more affordable, encouraging increased customer spending.  

“Secondly, many businesses in the sector are SMEs and cutting VAT would provide these businesses with help to recover from financial setbacks such as rising energy prices.  

“Finally, it takes an army of skilled people to deliver the hospitality experience we cherish and by allowing this industry to thrive it will create stronger, longer term job prospects and grow a skilled workforce which in turn will enable us to serve up the best possible experiences for all.” 

Earlier this month in the Commons, Conservative MP Anthony Mangnall urged Mr Hunt to cut VAT for tourism and hospitality businesses in the spring Budget. 

Mr Hunt replied: “We will, of course, keep all these measures under review ahead of the budget.”