Poll: what do you want from the Spring Budget?
It is expected Chancellor Rishi Sunak will deliver the Budget on 23 March as this is when he has commissioned the Office for Budget Responsibility to produce an economic and fiscal forecast.
Survey
Which would make the biggest difference to your business?
Keeping 12.5% VAT on food and soft drinks permanently
60%Beer duty cut
22%Business rates reform
15%Other
3%
The last Budget took place in October 2021, where Sunak announced a 50% discount on business rates bills, with a cap of £110,000.
There was also a 5% cut on duty for draught beer and cider however, the continued reduced 12.5% rate of VAT on food was not mentioned.
Letter written
The rate is set to return to 20% in April and more than 250 hospitality business leaders have written to the Chancellor, calling on the him to keep the current 12.5% level.
The letter, spearheaded by UKHospitality (UKH), highlighted the success of the lower rate VAT in helping businesses survive “the ravages of the pandemic”. It also stated the policy has allowed businesses to keep their prices as low as possible in the face of significant cost pressure to the sector.
UKH chief executive Kate Nicholls said: “There are many compelling reasons why VAT should be held at the current rate given the current circumstances. However, this is about so much more than an extension to temporary measures in the face of the challenges brought by Covid; it’s about working to establish the right tax level for our world-class hospitality and tourism industries.
“It is vital, in the interests of competitiveness, job creation, growth and ensuring hospitality and tourism play their full part in driving the economic recovery.”
Fundamental changes
The British Beer & Pub Association (BBPA) also urged the Government to heed to calls of its Long Live the Local campaign that looks to support the sector long term by extending the lower VAT rate, reducing beer duty and introducing business rates reform.
Furthermore, consumer organisation the Campaign for Real Ale (CAMRA) has also called for “fundamental changes” to the business rate system.
CAMRA chairman Nik Antona said: “Even before the pandemic, pubs were hit hard by the huge and unfair burden of business rates, which unfairly penalise pubs more than other types of businesses.”
