Sacha Lord has called directly on Chancellor Rachel Reeves to cut VAT for the hospitality sector, escalating the industry's campaign for tax relief as operators face mounting cost pressure.

Lord, the night-time economy adviser for Greater Manchester, made the appeal in comments reported by the London Evening Standard, framing a reduced VAT rate as a necessary intervention rather than a concession. His intervention puts a prominent regional industry voice squarely behind a demand that hospitality trade bodies have pressed on successive chancellors.

Who is making the demand?

Sacha Lord holds the night-time economy adviser role for Greater Manchester, a post that gives him standing to speak for one of the UK's largest regional leisure and hospitality markets outside London. Rachel Reeves, as Chancellor of the Exchequer, controls the fiscal decisions — including VAT rates — that determine whether the sector gets relief.

The call follows sustained lobbying from across the UK hospitality industry, where operators have repeatedly argued that the current VAT regime puts bars, restaurants and venues at a competitive disadvantage compared with European counterparts operating under reduced rates for food service and leisure.

What does a VAT cut mean for operators?

For hospitality businesses, a lower VAT rate would reduce the tax charged on food, drink and venue sales. Operators argue this would:

• Improve margins at a time of elevated input costs
• Allow pricing that keeps venues competitive with retail and supermarket alternatives
• Support investment in sites and staffing
• Reduce the incentive for under-declaration and cash-in-hand activity in the informal economy

European precedent matters here. Several EU member states apply reduced VAT rates to food service and hospitality, and UK operators have long pointed to that differential when arguing for a cut at home.

Why now?

Lord's public call on Reeves puts the issue back on the agenda at a moment when the sector is watching Treasury decisions closely. Each Budget and fiscal statement is a decision point for VAT policy, and industry figures have chosen this window to apply pressure.

The Chancellor faces competing fiscal demands, and hospitality has historically struggled to win VAT relief against the Treasury's revenue concerns. A cut in the headline rate carries a direct cost to the Exchequer, which is why successive governments have resisted it despite repeated campaigns.

What happens next?

The decision now sits with Reeves and the Treasury. Industry figures including Lord will look for movement on VAT in the next fiscal event, and further lobbying — from trade bodies, operators and regional advisers — is likely in the run-up to any Budget statement. Operators and investors should watch the fiscal calendar for the government's response.