Family brewers withdraw VAT Club group funding

10-Jun-2014 - Last updated on 11-Jun-2014 at 07:47 GMT

The IFBB has withdrawn its collective support for the VAT Club

The Independent Family Brewers of Britain (IFBB) will not renew its group funding for the VAT Club when its three-year agreement expires at the end of June – though half of its members will continue to donate independently.

The coalition of 29 family brewers and pub operators signed a three-year deal in 2011 pledging £240,000 to help fund French lobbyist Jacques Borel’s campaign to reduce VAT to 5% for the UK hospitality sector.

However, a statement issued this week said: "The IFBB confirms that it will not be renewing its funding for the VAT Club. The IFBB agreed to support the campaign for three years, which expires later this year. It is now up to individual members to donate directly to the VAT Club as they see fit, and we are aware that a number have chosen to do so.

"The IFBB wishes to thank the VAT Club for its success with raising the VAT issue for the pub industry, and for campaigning for a reduction in the 20% VAT rate on food, drink and accommodation in the hospitality industry.

"We continue to support all decreases in taxation on pubs, including VAT, duty and business rates, as we believe they are needed in order to support and maintain the UK’s thriving pub industry and rich beer heritage."

'Difficult questions'

One IFBB member told the PMA: “We’ve subscribed for three years and that’s enough. We’re not resigning in a huff or throwing our toys out of the pram, but we’ve had to ask ourselves some difficult questions about the campaign and make a financial decision that is right for our company.”

Jacques Borel revealed to the PMA that 15 members of the IFBB, including Fuller’s, “have made the decision to renew their commitment (representing 69% of IFBB membership funds) until 30th September 2015.

"A further eight members have not yet decided (representing 12% of IFBB membership funds) and five members have decided not to continue (representing 19% of IFBB membership funds)".

He thanked the IFBB for “their valuable support in the last three years” and added that the VAT Club would shortly be announcing new members.

Criticism

Tim Martin, chairman of JD Wetherspoon, last week criticised those pubcos that had not joined the VAT Club and the PMA for not supporting the campaign.

He said: “Wetherspoons, the family brewers, Punch, Heineken and many others have joined Jacques Borel's VAT Club to campaign for tax equality with supermarkets.

"At the grassroots level and in boardrooms where directors understand pub economics, the industry is united in its support for this campaign."