Member Article

Pubs and bars set to cut prices in VAT 'equality' campaign

Over 15,000 pubs, bars and restaurants will cut their prices today as part of a campaign to permanently reduce VAT.

Tax Equality day which will see the establishments reduce the price of food and drink by 7.5%, has been launched to show the benefits of cutting VAT.

37 companies have agreed to take part according to The Publicans Guide, including JD Wetherspoons, Wadworth & co, Everards, Fullers and Punch Taverns among the larger companies and among the smaller companies are names like Snug Bars, Pub Love and Anglian Country Inn.

Jacques Borel, the man behind the campaign, has managed to get VAT cuts in a number of European countries, including France, Germany, Belgium and Finland.

He said: “Tax Parity Day (last year) was an outstanding success and the perfect way to reinforce our message to the public that lower VAT in the hospitality sector will deliver lower prices and create hundreds of thousands of jobs.

“Although we have changed the name to Tax Equality Day, the message remains the same”.

“That message is clear - a reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector.

“At present all food and drink in pubs is subject to 20% VAT, compared to supermarkets which benefit from a zero VAT rate.”

A Treasury spokesperson said: “We are committed to supporting the leisure and hospitality industry and have cut the tax on a typical pint of beer by one penny at Budget 2013 and by a further one penny at Budget 2014, making a pint of beer 8p cheaper than under inherited duty plans.

“We are also providing additional support to businesses in a number of ways.

“For example, from April 2014 businesses and charities have been able to benefit from up to £2,000 off their employer national insurance contributions bill and over £1bn of business rates support has been provided.”

After a parliamentary debate on the subject in February, the government rejected a drop in VAT because it would cost too much and create a shortfall in tax revenue.

It was not mentioned in the budget statement that followed in the spring. Last years event helped to boost sales by up to 20% in some places.

Wetherspoons saw an increase of between 10 and 23% and are hoping for better this year as they are aiming to make it the busiest day of their year.

This was posted in Bdaily's Members' News section by Clare Burnett .