11 March 2026
A letter from Southampton hospitality businesses calling on the Chancellor of the Exchequer to ease mounting pressures on local venues has received more than 130 signatures from Southampton business owners.
Drafted by Spencer Bowman of Mettricks and backed by the Hospitality Action Group and GO! Southampton, the letter reflects on the unsustainable tax burden and calls for a fairer 10% VAT cut for hospitality businesses.
The letter, which also went to the UK Secretary of State for Business and Trade and the Minister for Small Business, stresses that operators are not seeking subsidies, but fairness and relief from what many believe is a disproportionate tax burden on the sector.
Businesses are still encouraged to sign the letter here.
With hospitality already operating on low margins, rising energy costs, food and drink inflation, and higher wages since Covid, many venues have been pushed into loss-making territory, leaving only a small number able to operate sustainably.
Earlier this month, a group of around 20 Southampton business leaders travelled to the House of Commons to raise the issue directly with policymakers, highlighting the scale of concern within the sector and the urgent need for targeted relief. During the visit, GO! Southampton’s Executive Director, Stephen Manion, also invited MP Blair McDougall to visit Southampton in the coming months to meet local operators and see first-hand the challenges facing hospitality businesses.
Spencer Bowman said: “Southampton’s hospitality sector is full of passionate, hard-working people. With a fair and balanced tax environment, we can create jobs, strengthen communities and bring back the magic of the high street. But the sector has no capacity left to absorb further costs, and without sensible relief we risk losing the places that make our city special.”
Support for the letter and wider lobbying efforts form part of GO! Southampton’s ongoing work to support the hospitality sector as businesses continue to navigate challenging economic conditions.
Stephen Manion, Executive Director of GO! Southampton said: “We fully support this letter and the call for fair treatment for Southampton’s hospitality industry. These businesses are vital to the city’s economy and employment, and they need a tax framework that allows them to survive and grow. While this letter highlights the national changes the sector needs, GO! Southampton will continue working locally to champion and support hospitality businesses across the city.”
Alongside advocating for the sector nationally, the BID also delivers initiatives to enhance the visitor experience, including improved information hubs, city visitor maps and a volunteer programme. It also promotes Southampton’s hospitality offer through the Visit Southampton website, dedicated marketing campaigns and channels such as The So SO Show podcast.
GO! Southampton continues to bring businesses together to listen to the sector’s needs while working to create a safer, cleaner and more welcoming city centre for residents, visitors and workers.
Hospitality businesses interested in joining the Hospitality Action Group, which is driving the campaign, can attend the next meeting on Monday 16 March at 3pm. Register in advance here.
