Fund to slash VAT hits £379k

Thirty two pubcos have now joined the campaign to reduce VAT for the hospitality sector, led by French entrepreneur and campaigner Jacques Borel.

Borel, who has helped secure VAT reductions for the hospitality sector elsewhere in Europe, including a 5.5% VAT rate in France, is campaigning for VAT charged in pubs and restaurants on drink, food and accommodation in the United Kingdom to be reduced from 20% to 5%.

Membership of the VAT club includes 29 family and regional brewers, including Charles Wells, Fuller’s and Shepherd Neame, along with managed pub company JD Wetherspoon (JDW), Pizza Hut UK and Mandarin Oriental Hotel Group.

Borel said that he is also in contact with a total of 84 chains of restaurants, pubs, contract caterers and hotels about the campaign.

The Independent Family Brewers of Britain has already pledged £240K to help Borel’s campaign. It is estimated by the campaigners that a reduction of VAT from 20% to 5% would create between 140,000 and 320,000 jobs in the UK’s hospitality sector.

The campaign has already attracted the backing of a wide range of trade associations as well as some industry leaders, including Tim Martin of JDW. It has appointed two PR agencies with clients in the pub and leisure sector to work jointly on publicising the case for reduced VAT.

Borel said: “The case for a targeted VAT reduction is a strong one — [this is] a great chance for the Government to stimulate employment.”

He said a grass roots campaign is about to be launched to increase wider understanding of the compelling reasons why reducing VAT for the hospitality sector would provide a substantial boost for the economy.

The PMA campaign calling for a cut in VAT to 5% for the hospitality industry has the backing of Borel as well as high-profile people including celebrity chef Marco Pierre White.

Its official petition already has almost 5,000 signatures as the Thrive on 5 campaign goes from strength to strength, with hundreds of VAT briefing packs sent to licensees who are meeting their MPs.

Please sign it at http://epetitions.direct.gov.uk/petitions/1198​, sign up to the PMA facebook page, and pass on these details via email and social media.