Epos Now founder backs hospitality rates cut, pushes for VAT relief

Epos Now Founder and CEO Jacyn Heavens welcomed the UK government’s 20% business rates cut for hospitality, calling it a boost for pubs, clubs and music venues. He is now pressing Prime Minister Andy Burnham to go further with a VAT reduction for small and medium-sized businesses.

Why it matters: - The business rates cut gives hospitality operators a direct cost break at a time when small firms face higher wages, energy and tax pressure. - A VAT cut would go further by reducing one of the biggest operating costs for small and medium-sized businesses. - The policy shift could help rebalance support toward high street businesses instead of large online and logistics operators.

What happened: - Jacyn Heavens, founder and CEO of Epos Now, welcomed Prime Minister Andy Burnham’s 20% cut to business rates for hospitality businesses. - The move covers pubs, clubs and music venues. - The policy also raises the threshold for independent hospitality, leisure and retail businesses. - Reports say the cut would be funded by higher business rates on large out-of-town distribution warehouses operated by companies such as Amazon.

The details: - Heavens called the policy a lifeline for small and medium-sized businesses squeezed by rising costs and an outdated tax system. - He said the change helps rebalance the scales in favor of independent hospitality and retail businesses. - Heavens urged Burnham to reduce VAT for small and medium-sized businesses as the next step. - He said business rates reform is a welcome first step, but not enough on its own. - He argued VAT is the single biggest lever the government has to ease pressure on businesses that employ millions of people across the country. - Heavens has already written to then-Chancellor Rachel Reeves to call for a VAT reduction for SMEs. - He has also backed Chef Tom Kerridge’s VATs the Problem campaign, which seeks to cut hospitality VAT from 20% to 10%.

Between the lines: - The comments frame business rates reform as politically helpful but incomplete for hospitality and retail. - Heavens is positioning Epos Now as an advocate for broader SME tax relief, not just sector-specific changes. - The push for VAT reform suggests business leaders want relief that reaches beyond property-based taxes.

What's next: - Heavens will keep pressing the government for a VAT cut for small and medium-sized businesses. - The hospitality sector will watch whether the rates reduction is followed by wider tax reform. - Further debate is likely over whether online giants and warehouse operators should carry more of the tax burden.

The bottom line: - The rates cut is a win for hospitality, but Epos Now wants the government to treat it as the start of a broader SME tax overhaul.