25 September 2013

VAT cut day to support local pubs

Many local pubs today are reducing their prices by 7.5% to highlight just one of the unfair conditions they operate under compared to supermarkets.  They are calling for a reduced rate of VAT for the hospitality industry in order to help them comptete with the big supermarkets.  The BBC report has more.

It is clear many local pubs are operating under extremly unfavourable conditions - particularly those who are being forced to finance the over-leveraging by the big pubco's management.

I can't see the VAT cut getting Treasury support - even if their estimated cost of introducing the measure of £9bn is proved to be an exaggeration.

But if the day highlights the plight of many pubs and encourages the Business Minister Jo Swinson to move quickly to end many of the unfair pubco practices - it will have served its purpose.

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