Pubs, bars and hotels report ‘Burnham bounce’ in optimism but call for further tax relief
Summary
Pubs, bars, and hotels in the UK feel more hopeful following new government support, especially a business rates discount announced by Prime Minister Andy Burnham. However, many in the hospitality sector say that without more tax cuts, this optimism may not last due to high costs, especially taxes.Key Facts
- A survey shows 37% of hospitality businesses now believe the government will help their industry, up from 18% before recent tax relief announcements.
- Prime Minister Andy Burnham introduced a discount on business rates for pubs, clubs, and live music venues.
- The hospitality and brewing sector contributes about £100 billion to the UK economy.
- Three-quarters of businesses in the sector see tax, mainly VAT (value-added tax), as their biggest problem.
- Political instability is the second biggest concern for these businesses.
- Trade groups want lower VAT, permanent business rate reforms, and changes to employer national insurance contributions.
- Over 330,000 people have signed a petition to reduce VAT on hospitality from 20% to 10%, matching many European countries.
- Some critics argue that lowering VAT would be costly and mostly benefit large companies, not small ones.
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