BBPA meets Treasury over VAT cut

Chief executive Brigid Simmonds said that a reduction in VAT could help boost employment in the licensed trade, but admitted that a cut to 5% may be a step too far for the Government.

The British Hospitality Association (BHA) is separately lobbying the Treasury for a VAT decrease, predominantly on accommodation and attractions.

Speaking at the BBPA’s Midlands and North Key Issues Forum in Birmingham last week, Simmonds said: “We are very supportive of a push to reduce VAT in the on-trade.

“We believe it should be food and alcohol, as well as the push that the BHA has around accommodation and attractions, which would obviously benefit our members.

“We have a meeting with Treasury officials — I think we need to understand how clearly it is looking at this and what more we could offer up.”

The Publican’s Morning Advertiser is pushing for a 5% VAT rate across the hospitality sector and has launched a Government petition. However, Simmonds thinks a compromise may be the only way forward.

She said: “Everyone has talked about a 5% rate of VAT — that could be quite costly to the Treasury in terms of the revenue it would forego and the time it would take up for it to have increased revenue through employment.

“I think we need to talk to the Treasury about where it is going
with this.

“Does it understand how we can be part of a growth agenda, and what sort of rate could we be looking at?
“It is about how to mitigate the cost (to the Treasury) and coming up with something that the Government would consider is good enough to look at.”

■ The Publican’s Morning Advertiser campaign to get VAT slashed to 5% — Thrive on 5 — already has the backing of some major pubcos and leading
trade associations. More than 3,000 people have signed a Government petition in support of the campaign at http://epetitions.direct.gov.uk/petitions/1198​