Public lends support to VAT cut for pubs, restaurants and hotels

Research carried out by OnePoll on behalf of Fourth Hospitality found that 67 per cent of the public back the industry’s calls for a lower VAT rate for pubs, restaurants and hotels, which in turn could boost sales and create more jobs. 

Although a campaign to lower the rate for the sector to 5 per cent has been heavily backed by the industry​, this research shows for the first time that there is public support too. ​

“It is extremely powerful to see so many people in favour of such a move,” said Fourth Hospitality chief executive Ben Hood. “I think some people in the hospitality industry will be surprised to see that this issue is really starting to resonate with consumers.” 

Support for pubs​ ​

The findings were welcomed by pub associations who were also told that 62 per cent of the 2,000 people surveyed believed the beer tax duty escalator was ‘bad news’ for pubs and 32 per cent were behind support for the licensed sector. ​

Nick Bish, chief executive of the Association of Licensed Multiple Retailers (ALMR), said: “It is good to see that the great British public values the pub and sees it more than just a place to go – recognising that it has a part to play in solving some of the problems with the economy. 

“Supporting the licensed hospitality and retail sector will bring positive results, especially in terms of pubs hiring more people which in turn helps the Government’s books and will be money well spent.” ​

Peter Thomas, chief executive of the British Institute of Innkeeping (BII), added: “We have been calling on the Government to support the trade with tax breaks and concessions, and we are delighted to discover this is something that is fully supported by the wider public. 

“Furthermore, while we have always instinctively known that pubs are valued and highly regarded by the public, it’s heartening to see this view reflected in such strong and validated consumer research.”

Jobs creation​

According to VAT campaigner Jacques Borel, a cut in the VAT rate to 5 per cent could help create up to 320,000 extra jobs in the hospitality industry​. 

Following the Budget in April, Karl Jones, managing director of Moshi Moshi in Brighton told BigHospitality he would be able to hire more staff if the VAT rate was lowered from the current 20 per cent. 

He told BigHospitality: "The Government wants to help unemployment, but no-one in the UK wants to work for the wages we can pay. If they cut VAT we could afford to employ more staff."