1p a pint off for second budget running (first time in history)
Duty escalator on Alcohol scrapped
Pubs helped, jobs created, drinkers happier
Shows the power of listening to those who know best!
Can only repeat; WELL DONE GEORGE!
Martin Read CMBII
Managing Director of Personal Licence Courses
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Thursday, 20 March 2014
Friday, 31 January 2014
Sign Up To Scrap the Duty Escalator
Ahead of the forthcoming Budget the battle has been joined by a new campaign to see the end of the hated Alcohol Duty Escalator!
The Chancellor last year decided not to implement the escalator on beer, and what do you know, as a result, the latest figures show that beer sales have grown - showing consecutive growth in two quarters for the first time in ten years. This in turn has raised more revenue for HMG, protected jobs and seen new investment in the sector. And now Wines and Spirits please!
Do you know that some 79% of the cost of a bottle of spirits and some 60% of the cost of a bottle of wine goes directly to HMG in one tax or another! The alcohol industry in general employs some 2 million people, is a glowing example of excellence, helps tourism, raises billions in tax and at pub level is at the centre of community life. So any action to hold prices down must surely be progressive?
Now there is a new campaign; "CALL TIME ON DUTY" and you can see all of the details on their website: www.calltimeonduty.co.uk
You can also contribute to the campaign by sending the following letter to your MP (courtesy of the campaign). The more they receive the better! So if you want to see the price of your pint, glass of claret and glass of gin not grow once again by 2% above inflation, get an envelope, print off the script below, sign it and down to the post office you go (or maybe email it to your local MP?)
Dear xxxx
I am writing as a constituent to ask you to write to the Chancellor of the Exchequer on my behalf. I would be grateful if you could urge him to call time on his alcohol super tax (the Alcohol Duty Escalator) in the 2014 Budget.
I am supporting the campaign because I cannot believe how unfair the current alcohol tax system is. I find it incredible that if I buy an average priced bottle of spirits, more than three-quarters (79%) of it goes to the Chancellor in tax. The tax on a bottle of wine, nearly 60% of the cost of an average priced bottle, is also ridiculously high, especially if you compare it with France where I would pay 20% or Spain where I would pay 21% in tax.
I just cannot see how it is fair to hit hard-pressed consumers with an alcohol super tax that keeps on rising by 2% above inflation, year on year. Surely the cost of living is already high enough without the Chancellor taking the tax on a bottle of spirits to over 80%, which is what will happen unless he calls time on his unpopular alcohol super tax in the next Budget.
George Osborne talks about creating new jobs and cutting taxes. Calling time on his super tax would do both. Independent research shows that 6000 new jobs could be created and £230 million of additional public finances generated to pay for schools and hospitals if he does the right thing and scraps his super tax.
The fact that my local pub would benefit too is really important. I was pleased when I heard the Chancellor wanted to support pubs, but then I learnt that he increased their tax bill by £34 million in 2013 through his Alcohol Duty Escalator on wines and spirits. This simply does not make sense when 26 million people drink wine in pubs, bars and restaurants, and wine and spirits already account for almost half (42%) of their alcohol sales.
Almost two million people depend on the alcohol industry for their livelihoods, while the industry generates £38 billion for the economy annually and pays £17 billion in tax.
Responsible drinkers deserve a freeze in alcohol duty, not another inflation-busting tax hike. Please could you urge the Chancellor to use his 2014 Budget to do the right thing and scrap this deeply unpopular super tax? I look forward to hearing from you and to receiving a copy of the Chancellor’s response to your letter.
The Chancellor last year decided not to implement the escalator on beer, and what do you know, as a result, the latest figures show that beer sales have grown - showing consecutive growth in two quarters for the first time in ten years. This in turn has raised more revenue for HMG, protected jobs and seen new investment in the sector. And now Wines and Spirits please!
Do you know that some 79% of the cost of a bottle of spirits and some 60% of the cost of a bottle of wine goes directly to HMG in one tax or another! The alcohol industry in general employs some 2 million people, is a glowing example of excellence, helps tourism, raises billions in tax and at pub level is at the centre of community life. So any action to hold prices down must surely be progressive?
Now there is a new campaign; "CALL TIME ON DUTY" and you can see all of the details on their website: www.calltimeonduty.co.uk
You can also contribute to the campaign by sending the following letter to your MP (courtesy of the campaign). The more they receive the better! So if you want to see the price of your pint, glass of claret and glass of gin not grow once again by 2% above inflation, get an envelope, print off the script below, sign it and down to the post office you go (or maybe email it to your local MP?)
Dear xxxx
I am writing as a constituent to ask you to write to the Chancellor of the Exchequer on my behalf. I would be grateful if you could urge him to call time on his alcohol super tax (the Alcohol Duty Escalator) in the 2014 Budget.
I am supporting the campaign because I cannot believe how unfair the current alcohol tax system is. I find it incredible that if I buy an average priced bottle of spirits, more than three-quarters (79%) of it goes to the Chancellor in tax. The tax on a bottle of wine, nearly 60% of the cost of an average priced bottle, is also ridiculously high, especially if you compare it with France where I would pay 20% or Spain where I would pay 21% in tax.
I just cannot see how it is fair to hit hard-pressed consumers with an alcohol super tax that keeps on rising by 2% above inflation, year on year. Surely the cost of living is already high enough without the Chancellor taking the tax on a bottle of spirits to over 80%, which is what will happen unless he calls time on his unpopular alcohol super tax in the next Budget.
George Osborne talks about creating new jobs and cutting taxes. Calling time on his super tax would do both. Independent research shows that 6000 new jobs could be created and £230 million of additional public finances generated to pay for schools and hospitals if he does the right thing and scraps his super tax.
The fact that my local pub would benefit too is really important. I was pleased when I heard the Chancellor wanted to support pubs, but then I learnt that he increased their tax bill by £34 million in 2013 through his Alcohol Duty Escalator on wines and spirits. This simply does not make sense when 26 million people drink wine in pubs, bars and restaurants, and wine and spirits already account for almost half (42%) of their alcohol sales.
Almost two million people depend on the alcohol industry for their livelihoods, while the industry generates £38 billion for the economy annually and pays £17 billion in tax.
Responsible drinkers deserve a freeze in alcohol duty, not another inflation-busting tax hike. Please could you urge the Chancellor to use his 2014 Budget to do the right thing and scrap this deeply unpopular super tax? I look forward to hearing from you and to receiving a copy of the Chancellor’s response to your letter.
Friday, 24 January 2014
Campaigning To Stop Further UK Pub Closures
The time is coming that "something" really needs to happen!
We have lost around ten thousand pubs in recent years, and if we are not careful we will lose many more in the not too distant future. There is of course lots going on to try and fight off the demise of our treasured pub institution, but frankly all of the effort in the world, other than getting more people to use pubs more often, will come to nought unless 'pub-going' gets back into fashion.
Government is also now realising that if more people stay at home drinking and purchasing alcohol in supermarkets there is a loss in revenue terms to the exchequer, this along with the social impact and high street demise. Pubs are important, stupid.
So what part does "the cost of going to the pub" play in the greater scheme of things? I think "more and more" is the answer.
I have blogged before on my 'hobby-horse' about our culture of 'round-buying', and I continue to believe that it is detrimental to our industry. I hear many people say that they avoid certain pubs at certain times because they know they will get involved in a round-buying group where a round can cost £20 or more. For those who want to go on doing it "fine", but let us create a culture where it is perfectly acceptable for those who want to "buy their own" to not be considered as skinflints or social pariahs!
Onto the VAT disparity twixt supermarkets and pubs. It is outrageous that supermarkets pay no VAT on food when pubs pay (and therefore you dear pub customer) 20%.
The argument is simple: Reduce VAT for pubs – more people will visit, spend more money, create more jobs, regenerate high streets, generate more revenue for HMG. The battle is joined and growing in influence. Want to know more? Take a view: www.vatclubjacquesborrel.co.uk
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
We have lost around ten thousand pubs in recent years, and if we are not careful we will lose many more in the not too distant future. There is of course lots going on to try and fight off the demise of our treasured pub institution, but frankly all of the effort in the world, other than getting more people to use pubs more often, will come to nought unless 'pub-going' gets back into fashion.
Government is also now realising that if more people stay at home drinking and purchasing alcohol in supermarkets there is a loss in revenue terms to the exchequer, this along with the social impact and high street demise. Pubs are important, stupid.
So what part does "the cost of going to the pub" play in the greater scheme of things? I think "more and more" is the answer.
I have blogged before on my 'hobby-horse' about our culture of 'round-buying', and I continue to believe that it is detrimental to our industry. I hear many people say that they avoid certain pubs at certain times because they know they will get involved in a round-buying group where a round can cost £20 or more. For those who want to go on doing it "fine", but let us create a culture where it is perfectly acceptable for those who want to "buy their own" to not be considered as skinflints or social pariahs!
Onto the VAT disparity twixt supermarkets and pubs. It is outrageous that supermarkets pay no VAT on food when pubs pay (and therefore you dear pub customer) 20%.
The argument is simple: Reduce VAT for pubs – more people will visit, spend more money, create more jobs, regenerate high streets, generate more revenue for HMG. The battle is joined and growing in influence. Want to know more? Take a view: www.vatclubjacquesborrel.co.uk
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Tuesday, 7 January 2014
2014s Hospitality Growth Area Predictions
And so another year begins, 2014 and all of that. Here are a few hot trends on the positive side (let's at least be optimistic for the first few weeks of the year!)
The eating–out sector will continue to grow (slowly) as more disposable income is available in many households. 'Casual Dining' outlets will be the main benefactors with consumers trading down from more formal dining; competitive pricing, more varied menus, flexible serving hours and great customer service will be the key. Pubs can certainly take advantage of this forecast.
Beer sales will continue to decline but the huge growth in Craft Breweries will continue (up some 80% in 2013). Local products produced by local people for local consumption, that’s the key, I have a great mate who runs a small craft brewery in the Cotswolds, he and his family team are going from strength to strength, check it out; North Cotswold Brewery. And of course; the chancellors decision on beer duty in the forthcoming budget (increase or not) will have a major impact on sales in 2014.
Coffee sales (in my view: amazingly) will continue to grow and the consumer will become more discerning, so investment in the top range of coffee machines and beans is vital (no more instant cups for £1).
Nightclubs will come under increasing pressure to thrive: new legislation, curtailed hours, late night levies, all conspiring to make it more difficult for them, especially as more pubs offer night club type environments without a door charge!
The 'Grey Pound' will continue to offer great opportunities as the population ages and most live longer and have more disposable income.
The B & B and hotel sector will show growth as corporate business grows and once again the +60 year old market will bring more business as they travel more and more.
The big generic trend will be in the growth of marketing via technology. Cashless payment, bookings via mobile phones, pre-ordering apps, digital marketing tools, loyalty apps, social media marketing, smartphone apps, etc. All designed to make it easier for the customer to find your outlet, see what you have to offer and compare it to others; Book a meal or room or drink, then pay for it!
What will remain the same for success in the hospitality industry? Great service, great products, great standards, great staff, great knowledge, great prices, great toilets, great smiles, great thanks and most of all great training!
A very Happy and prosperous New Year to you all!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
The eating–out sector will continue to grow (slowly) as more disposable income is available in many households. 'Casual Dining' outlets will be the main benefactors with consumers trading down from more formal dining; competitive pricing, more varied menus, flexible serving hours and great customer service will be the key. Pubs can certainly take advantage of this forecast.
Beer sales will continue to decline but the huge growth in Craft Breweries will continue (up some 80% in 2013). Local products produced by local people for local consumption, that’s the key, I have a great mate who runs a small craft brewery in the Cotswolds, he and his family team are going from strength to strength, check it out; North Cotswold Brewery. And of course; the chancellors decision on beer duty in the forthcoming budget (increase or not) will have a major impact on sales in 2014.
Coffee sales (in my view: amazingly) will continue to grow and the consumer will become more discerning, so investment in the top range of coffee machines and beans is vital (no more instant cups for £1).
Nightclubs will come under increasing pressure to thrive: new legislation, curtailed hours, late night levies, all conspiring to make it more difficult for them, especially as more pubs offer night club type environments without a door charge!
The 'Grey Pound' will continue to offer great opportunities as the population ages and most live longer and have more disposable income.
The B & B and hotel sector will show growth as corporate business grows and once again the +60 year old market will bring more business as they travel more and more.
The big generic trend will be in the growth of marketing via technology. Cashless payment, bookings via mobile phones, pre-ordering apps, digital marketing tools, loyalty apps, social media marketing, smartphone apps, etc. All designed to make it easier for the customer to find your outlet, see what you have to offer and compare it to others; Book a meal or room or drink, then pay for it!
What will remain the same for success in the hospitality industry? Great service, great products, great standards, great staff, great knowledge, great prices, great toilets, great smiles, great thanks and most of all great training!
A very Happy and prosperous New Year to you all!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Friday, 20 December 2013
£90 Million Boost For UK Tourism (and Pub Trade?)
More good news for the hospitality sector; HMG has committed a further £90 million to help promote the UK as a place to visit and do business in. Forecasts are that some 32.6 million people will visit these shores during 2014, spending some £21.5billion!
New markets for our visitors to come from include China, Malaysia, South Korea and Mexico, and new (relaxed) visa regulations are forecast to see a step change in visitor numbers from these countries.
Now being that pubs are in the center of hospitality in the UK and being that "to visit a British Pub" is often on the list of reasons to visit the UK, it seems to me there is a few quid to be made here by our over-worked, under-paid (apparently) licensees.
I have tried to work out on my calculator that if say 20% of the £21.5 billion is spent in pubs and that there are some 50000 pubs left, how much could each see in their tills? Unfortunately my calculator does not allow for such large numbers, all it tells me is that there is plenty to go around!
Which pubs will benefit the most? I'll bet it's those that market their businesses the best! 'Hospitality' is the Bedrock of the UK economy, so says a report from Visit Britain and their GREAT campaign; The Great British Pub is at the heart of it!!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
New markets for our visitors to come from include China, Malaysia, South Korea and Mexico, and new (relaxed) visa regulations are forecast to see a step change in visitor numbers from these countries.
Now being that pubs are in the center of hospitality in the UK and being that "to visit a British Pub" is often on the list of reasons to visit the UK, it seems to me there is a few quid to be made here by our over-worked, under-paid (apparently) licensees.
I have tried to work out on my calculator that if say 20% of the £21.5 billion is spent in pubs and that there are some 50000 pubs left, how much could each see in their tills? Unfortunately my calculator does not allow for such large numbers, all it tells me is that there is plenty to go around!
Which pubs will benefit the most? I'll bet it's those that market their businesses the best! 'Hospitality' is the Bedrock of the UK economy, so says a report from Visit Britain and their GREAT campaign; The Great British Pub is at the heart of it!!
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
Wednesday, 2 October 2013
Pub Sales Increase By 10-23% As A Result Of Tax Parity Day
Around 15000 pubs took part in the Tax Parity Day last Wednesday, a campaign (see previous blogs) to seek to have a reduction in VAT for pubs - thereby giving tax parity with supermarkets.
The 15000 pubs reduced their prices on the day so that the new price reflected what would happen if VAT was reduced to 5%, and what do you know? Sales went up!
Many operators recorded increased sales, with Amber Taverns up between 10% to 23%, St Austell up 10% and JDW boss Tim Martin reporting that "Tax Parity Day was an outstanding success with sales up approximately 20%". Many others reported similar success stories.
The theory remains the same; reduce VAT in pubs to give parity with supermarkets and sales will grow. This will create more jobs (700,000 more jobs created in countries that have so far bitten the bullet and reduced VAT) this in turn will increase tax revenue (each extra £3 pint sold in a pub produces £1 in tax and £1 in wages).
A long hard slog, but eventually...??
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
The 15000 pubs reduced their prices on the day so that the new price reflected what would happen if VAT was reduced to 5%, and what do you know? Sales went up!
Many operators recorded increased sales, with Amber Taverns up between 10% to 23%, St Austell up 10% and JDW boss Tim Martin reporting that "Tax Parity Day was an outstanding success with sales up approximately 20%". Many others reported similar success stories.
The theory remains the same; reduce VAT in pubs to give parity with supermarkets and sales will grow. This will create more jobs (700,000 more jobs created in countries that have so far bitten the bullet and reduced VAT) this in turn will increase tax revenue (each extra £3 pint sold in a pub produces £1 in tax and £1 in wages).
A long hard slog, but eventually...??
Martin Read CMBII
Managing Director of Inn-Dispensable Personal Licence Courses
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