The Campaign for Pubs, the national grassroots campaign to promote, support and protect pubs, has called on the chancellor, Rishi Sunak, to show support for thousands of community pubs by cutting VAT to 5% for 12 months, for all on-sales in pubs.
The group has been campaigning for a 12-month VAT cut for all hospitality, so that all the nation’s pubs can be assisted through the current crisis. However, in his summer statement, the Chancellor only cut VAT for food and soft drinks, which gave a huge boost to large fast food chain restaurants like McDonalds and pub-restaurants like Wetherspoons, and gave no help to small wet-led pubs.
Many smaller pubs are struggling with reduced trade following three months with no income at all. The Campaign for Pubs is calling for an urgent VAT cut to help all pubs as the European Commission has confirmed that the UK is able to offer such a cut, with EU member states allowed to apply targeted reductions on VAT on drinks, including alcohol — something that has previously not been possible.
Other countries have already made wider VAT cuts on beer, which is crucial to wet-led pubs. Many traditional community pubs don’t serve food and so only a cut on beer — although ideally on all products — will help. It would also assist UK cider maker and producers of other products enjoyed in pubs.
The Campaign for Pubs is urging all pub lovers to back the calls for 5% VAT for all pubs and to call on their MPs and the government to back this too and save pubs. The groups has started a petition on change.org backing the VAT cut for all pubs and is urging people to sign it.
Greg Mulholland, campaign director of the Campaign for Pubs, said: “Now that the European Commission have confirmed that VAT cuts can be extended, the Chancellor should now show support for thousands of community pubs and cut VAT to 5% for all pubs, on all their on-sales.
“At the moment, it is hugely unfair that many of the pubs who need help most aren’t getting any, whilst multi-million pound businesses like McDonalds and Wetherspoons are. If the government are serious are supporting pubs, they need to get a VAT cut for all pubs now.”
