The failure of the Chancellor to extend the 12.5% rate of VAT for hospitality will affect tourism businesses, too, says St Austell Brewery chief executive, Kevin Georgel.
St Austell Brewery chief executive, Kevin Georgel
“Recovery of the hospitality sector has been a priority as restrictions have eased,” he said. “Undoubtedly, costs have risen exponentially for businesses, given the ongoing situation in Ukraine, and rising inflation, energy, and fuel costs present a significant concern, meaning further financial support in these challenging times is crucial.
“We are, therefore, disappointed that the government has decided not to extend the 12.5% rate of VAT today, and that it will return to 20% next month.”
He added: “Pubs create jobs and play a huge part in the UK tourism sector, something which is critical to the economy here in the South West. Pubs are also at the heart of communities across the West Country and beyond, providing people with places to gather and socialise.
“The economic and societal benefits of extending the 12.5% VAT rate would have been enormous and enabled tourism and hospitality to thrive.
“We would urge the government to provide further long-term support to Britain’s pubs and breweries by addressing the overall tax burden that businesses now face. This will enable the hospitality sector to rebuild and help businesses like ours play a role in accelerating the UK’s economic recovery.”
