Epos Now CEO backs hospitality rates cut, urges VAT reform

Epos Now founder and CEO Jacyn Heavens welcomed the UK government’s 20% business rates cut for hospitality, calling it a lifeline for small firms on the high street. He is now pressing Prime Minister Andy Burnham to go further with a VAT cut for small and medium-sized businesses.

Why it matters: - The 20% business rates cut could lower costs for pubs, clubs and music venues that have faced years of pressure from rising expenses. - The policy may help rebalance the tax burden between high street businesses and large online and logistics operators. - Heavens says VAT reform is the next big lever for easing pressure on small and medium-sized businesses that employ millions across the UK.

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 announcement includes a 20% reduction in business rates for pubs, clubs and music venues. - The policy 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 run by companies such as Amazon.

The details: - Epos Now is one of the UK’s leading SaaS and payments services providers and supports more than 100,000 merchants worldwide. - Heavens called the move a positive step forward for small and medium-sized businesses on Britain’s high streets. - He said the current system unfairly favors online giants over local businesses. - Heavens said Prime Minister Burnham understands the pressure on independent hospitality and retail businesses. - He also said the government is starting to rebalance the scales. - Heavens is urging the Prime Minister to commit to a reduction in VAT for small and medium-sized businesses. - He said business rates reform is only a first step. - He said VAT is the single biggest lever the government has to reduce pressure on SMEs.

Between the lines: - Heavens is using the business rates win to push for a broader tax reset for small businesses. - The comments point to a larger debate over how to fund relief for local operators without widening the gap with online and warehouse-heavy businesses. - Heavens has already made VAT reform a core message, which suggests Epos Now sees the issue as structural, not temporary. - He previously wrote to then-Chancellor Rachel Reeves calling for a VAT reduction for SMEs. - He has also backed Chef Tom Kerridge’s “VATs the Problem” campaign, which wants hospitality VAT cut from 20% to 10%.

What's next: - Heavens is expected to keep pressing for a VAT cut after the business rates announcement. - The next test is whether the government broadens relief beyond rates and into VAT. - Epos Now’s advocacy suggests more pressure from the SME sector if the policy package stops at business rates.

The bottom line: - Epos Now sees the hospitality rates cut as progress, but not enough. The company’s founder wants the government to use VAT reform to deliver deeper relief for small businesses.