Epos Now CEO backs hospitality rate 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 small firms on the high street. 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 rates cut could lower costs for pubs, clubs and music venues that have faced years of pressure from rising expenses. - The policy also signals a broader shift toward easing the tax burden on independent high street businesses. - Heavens is using the announcement to push for a bigger reform: lower VAT for small and medium-sized businesses.

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 policy gives pubs, clubs and music venues a 20% reduction in business rates. - The measure also raises the threshold for independent hospitality, leisure and retail businesses. - Reports suggest the cuts 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called the move “a lifeline” for small and medium-sized businesses squeezed by rising costs and what he described as an outdated tax system. - He said the announcement shows a government willing to rebalance the scales in favor of the high street. - Heavens said business rates reform should be followed by a VAT cut for small and medium-sized businesses. - He argued VAT is the single biggest lever the government has to ease pressure on businesses that employ millions of people across the country. - Epos Now supports more than 100,000 merchants worldwide. - Epos Now delivers integrated tools across payments, point-of-sale, capital and business management software. - The company is valued at over £1 billion and is a member of the UK’s Unicorn Council.

Between the lines: - The statement reflects growing pressure on the government to pair business rates relief with wider tax changes for hospitality and retail. - Heavens is positioning business rates reform as helpful but incomplete, which keeps the VAT debate front and center. - The reference to warehouse tax increases underscores the political tension between online retail and brick-and-mortar businesses. - Heavens has already written to then-Chancellor Rachel Reeves calling for VAT cuts and has backed Chef Tom Kerridge’s “VATs the Problem” campaign.

What’s next: - Heavens is urging the Prime Minister to commit to a VAT reduction for small and medium-sized businesses. - The hospitality sector will be watching whether the rates cut becomes part of a wider package of tax relief. - Further pressure is likely to build on the government to address VAT for pubs, restaurants and other high street operators.

The bottom line: - The business rates cut is a win for hospitality, but Epos Now’s CEO wants the next move to be VAT reform.