Video: Pub operators back VAT cut

By Becky Paskin, Big Hospitality

- Last updated on GMT

Related tags: European union

Pub operators at the recent MA250 conference explain why they are supporting a cut in VAT for the pub industry.

Britain has one of the highest VAT rates for the hospitality industry in the European Union, eclipsing 21 countries that have a lower rate for hotels, and 13 with a lower rate for restaurants and caterers.

While the EU has granted powers to member states to set their own separate VAT level for hotels, pubs and restaurants, the British government is still yet to take advantage.

Arguably, a lower VAT rate for the sector would generate more tax revenue for the government through the creation of more jobs.

Jacques Borel, the man behind the 5.5% VAT reduction for the hotel and restaurant industries in France, has estimated a similar result can be achieved in Britain with the creation of up to 320,000 jobs, by April 2014.

• To receive a briefing pack on the arguments behind the VAT cut email​.

Related topics: Other operators

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