Pubs to Drop Drinks Prices on September 25th

The campaign for a VAT reduction to 5% for the pub industry (Tax Parity Day) is hotting up!

The planned day of action looms where thousands of pubs are due to reduce their prices by 7.5% which would mirror the effect of the reduction of VAT to 5%, the anticipated effect of the action days is to see growth in sales of 8%. Sorry about all of the numbers, but it is a mathematical equation to underpin the message that a permanent VAT reduction would see growth of employment and development in the leisure sector.

Tax parity twixt pubs and supermarkets is the goal in all of this, which in turn would likely persuade more people to visit the pub rather that sit lonely at home supping Ale!

Here is the argument; Supermarkets in effect pay little or no VAT on food whereas pubs pay 20%, this enables supermarkets to subsidise their sales of alcohol, this in turns results in a huge gap between pub and supermarket prices. The VAT Club, headed up by Jaques Borel (see my previous blogs) are seeking to have VAT in pubs reduced to 5%, and their case is; Since a pint in a pub is three to four times more expensive than a supermarket the cash VAT per pint levied by the government would be similar in supermarkets and pubs if VAT was reduced as they suggest.

Just one issue, it apparently would cost HMG £12 billion to do it!

Support your pub, visit it on the day of action, put Wednesday 25th September into your diary!