The British Beer and Pub Association has expressed disappointment that the chancellor has not extended the 12.5% rate of VAT for hospitality.
Chief executive, Emma McClarkin (pictured), said: “The sector remains on a knife-edge as it emerges from the pandemic, and the impact of the recent energy crisis and invasion of Ukraine has ensured the turbulent times will continue for pubs and brewers just as we had hoped to build the road to recovery. The coming months could be some of the hardest yet for our pubs and brewers.
“The failure to act today represents a huge missed opportunity to help brewers and pubs in the face of sharp increases to the cost of living and doing business.
“The report we published last month set out the undeniable case for making the 12.5% rate of VAT permanent. The economic and societal benefits of making this change would be enormous and enable the tourism and hospitality sectors to truly act as an engine for the UK’s recovery as we look beyond the pandemic.”
Emma added: “We welcome the chancellor’s announcement today to increase the Employment Allowance and the threshold for National Insurance contributions, the planned increase in the income tax threshold, and the fuel duty cut. However, the fact remains that these will do little to help the bottom line for thousands of pubs and brewers around the country struggling with increasing overheads and concerned consumers.
“In the autumn Budget it is crucial that the punitive overall tax burden on our sector is addressed to reignite our industry with a long-term approach and vision for our sector recovery. This means business rates reform to reduce the disproportionate burden on pubs, and implementation of alcohol duty reform proposals that support Britain’s brewers and pubs and drives consumers towards lower-strength products.”
