ALMR calls for VAT hike delay

The Chancellor should use the Budget to delay the VAT rise by a month as well as freeze duty on beer.

That is according to the Association of Licensed Multiple Retailers (ALMR), which is concerned that the planned increase in VAT on 31 December will cause pubs no end of trouble.

"New Year's Eve is the worst possible day to impose the huge task of reversing last year's VAT cut," said ALMR boss Nick Bish.

"It cost the sector almost half a million pounds to implement the cut to 15% and, because of the timing, will cost a similar amount to reintroduce the 17.5% rate. That's the worst possible hangover for hardworking licensees to face at the start of a new year."

The ALMR is also calling for and end to the alcohol duty escalator and a moratorium on new business taxes, cost burdens and red tape to give pubs vital breathing space.

"Unlike other industries we are not looking for a government bail-out — hard working licensees want a hand up not a hand out.

"With a little bit of support from the government they can not only survive but even thrive. Even good, well invested sites are having to generate positive growth of between 3-4% just to stand still. The Government should be helping them do that, not hindering them with further tax increases."

He added: "The Great British Pub is a national asset. Pubs bring local communities together and create thousands of jobs. They also pay a great deal of tax. It is about time that Mr Darling recognised a pub taxed into closure soon pays no tax at all."