Campaign to cut hospitality VAT 'will accelerate in 2013'

That’s according to Jacques Borel, the lobbyist leading the campaign for a VAT cut for the sector. Asked if the campaign will intensify in 2013, Borel (pictured) said: “Of course. We are at the stage where things start to accelerate.”

Borel also revealed four of the 12 questions he was asked during his meeting with the Treasury earlier this year.

The first was how the money saved if VAT was cut from 20% to 5% would be used by the sector.

Borel said members of his VAT Club have agreed to use 60% of it towards price reductions for customers, with 20% spent on refurbishments and expansion, and 15% on labour issues such as salaries and training.  Just 5% would be put towards higher margins for company stock holders.

Borel was also asked about the impact on jobs if VAT became 10% rather than 5%. He said 402,000 jobs would be created instead of 670,000.

Asked why the sector should be favoured over others, Borel said it would “create more jobs in the minimal amount of time” — between 150,000 and 200,000 in year one, with 400,000 to 670,000 created in three years. “You cannot do that with any other industry,” he said.

The fourth question related to the perception that restaurant jobs are low-paid. Borel said Kate Nicholls, strategic affairs director at the Association of Licensed Multiple Retailers, who was with him at the meeting, pointed out that between 15% and 30% of jobs in the industry are “responsible” jobs.

About 50 leisure and hospitality firms currently back the campaign and Borel hopes to reach 75 members soon, at which point membership fees will cover his costs.

The Frenchman has pre-viously maintain-ed that he is targeting an announcement on VAT to be included in the pre-Budget Report of October/November next year for enactment within the Budget in
April 2014.