Despite being a single, family-run business, we are deemed too large to benefit from any rate relief. The so-called ‘relief’ they talk about is actually an increase of more than 65% for us from next year, taking into account previous increases made.
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And while it’s a very welcome change that around one in 10 pubs (and small retail outlets) will now become exempt from business rates altogether, for the rest of us, we remain the highest taxed industry in the UK economy. For every pound we earn, 82% of that is paid back in various business taxes.
As a direct result, we will be unable to employ more people, especially the first time, young jobbers the Government has identified as a sector in our society badly out of work.
Real shame
We have been a huge provider of work and training for young people during the past 20 years and to see so many flourish and grow in confidence was always a great part of the job. This is a real shame.
Instead, owners like us now have to adapt yet again and focus on new risk-averse strategies, discarding expansion plans and shrinking. What in the entrepreneurial spirit is that all about when this country needs to grow?
Perhaps the worst kicker of all is the decision to ignore the huge campaign to reduce VAT (which Andy Burnham had appeared to support before becoming PM while nursing various pints in his local venues).
Locking up for good
The European average VAT sits at around 10%, which is half of what we pay for the luxury of putting food on a plate. You only have to visit Spain, France or Italy to see how much it affects their economy with cafes and eateries far busier and, oh yes, actually viable. In Germany it’s 7% to our 20%!
Not sure Burnham or Healey will find themselves as welcome now and with more pubs closing every day now than during Covid times, it’s likely he’ll see more of his ‘locals’ locking up for good.
Let’s hope Tom Kerridge, a great spokesman for our trade, keeps the #VatsTheProblem campaign going. I’d argue the real problem in our country remains tax avoidance. Perhaps Burnham should relook at a wealth tax or, at the very least, challenge the industries avoiding and negotiating their tax from online giants and chains to local builders.
I’d welcome that over a cheaper gherkin any day…
