Publicans 'back VAT cut campaign'

A survey of 1,003 licensees by Cardinal Research on behalf of VAT Club Jacques Borel found that 96% say the pub and restaurant industry should campaign for the reduction, 94% support the campaign by the VAT Club JB and 86% agree that it’s unfair that supermarkets don’t pay VAT on food while pubs have to.

The VAT Club said the survey asked licensees across Britain involving licensees of Punch, Enterprise, Star Pubs & Bars, Marston’s, Wetherspoon, Greene King, Spirit and Mitchells & Butlers. They represented a mix of free house, leased, tenanted, franchised and managed pubs.

Ninety eight per cent of leased publicans (including 100% of Star and Marston’s, 99% of Punch, 98% of Enterprise Inns and 94% of Greene King lessees) supported the cut. In the managed sector 92% of publicans supported a reduction in VAT, with support amongst free traders at 96%.

Food​

The survey also highlighted that 82% of licensees agree that the supermarket VAT tax break on food helps supermarkets subsidise drinks and that 92% of licensees agree that a VAT tax reduction on food would allow them to reduce prices and attract more customers.

Meanwhile, 64% of licensees are aware that supermarkets do not pay VAT on their food sales.

Positive effect on business​

VAT Club JB chairman Jacques Borel said: “The findings of this important survey clearly emphasise the fact that licensees across the UK wholeheartedly back the vital campaign to reduce the level of VAT on food and drink in pubs and restaurants.

“It also highlights the fact that individual licensees back the VAT Club JB and believe that if the campaign is successful, it will have a positive effect on their business.

“The clear message to Government and individual MPs of all political parties is that the VAT campaign is of great importance to licensees and the pub industry.”