Treasury minister pledges support for pubs

Treasury minister John Healey said pubs are important to local communities and the British economy and has pledged his support for the trade.

Speaking at the fifth session of the Community Pubs Inquiry today, Healey said he was a big fan of pubs - saying the inquiry was originally his suggestion.

The Treasury will consider very carefully any conclusion which are drawn from this inquiry.​Treasury minister John Healey.

He also gave the panel, chaired by Janet Dean MP a welcome boost saying: "The Treasury will consider very carefully any conclusion which are drawn from this inquiry. ​

"One of my favourite things is going to the pub and I believe pubs have a very important place in the community and in the economy and I would like to see them survive and develop and be the vibrant places many of them currently are."

The minister was before Janet Dean MP and the rest of the inquiry panel to answer questions about tax breaks for the trade.

He encouraged the panel to make speedy representations about Hotels Building Allowance - which gives a tax break for businesses with more than ten beds - but he was less encouraging about VAT reductions.

Healey said the Government's hands were tied when it came to VAT because any changes had to be unanimously agreed by the European Commission.

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Your Comments​Pearl Robinson​ via email 25/07/2006"I wonder if Mr Healey is going to do anything to protect the large number of border line pubs that will close as a direct result of the no smoking ban next year? Is he going to arrange compensation for those businesses that will not survive? Or is he just like everyone else who think that pubs are a licence to print money and hasn't a clue how the industry operates. If people like him took the time to try and understand the huge problems that face an already declining trade perhaps more could be done to stem the closure of so many pubs both now and in the future."

E B Cant​ via email 25/07/2006"John healeys coments about how he would like to see pubs survive & develope, he mentioned that we could`nt do anything about vat as it would have to go through the european commission, who would have to vote unanimously for this to happen, well what a turn up for the books, mr healey are you aware of the case concerning bernie crechan, which was in favour of his case against the pubco`s, they appealed to our lord in this country & the case was overturned, so my argument mr healey is that you dont want to lower vat.nothing to do with european commission, your lot have proven time & time again, that you do what you want to suit your own pocket."

David Pott​ via email 25/07/2006"Healy claims that VAT is tied by the EC.

That may well be true but it does not prevent HMG having varied VAT bands as they certainly do in Spain and I believe also in France and Italy.

In Spain the simple corner bar will only have to add 4% on its drinks for IVA (VAT). If we had that band here I could then sell my session bitter at £2.15 instead of £2.40 maintaining my GP.

The biggest threat to real pubs now is the smoking ban upon which Arnott even had the gaul to boast how ASH had conned HMG and the press in Wednesday's Guardian."