Rushmoor Borough Council has called on the Government to “level the playing field between pubs and supermarkets by reducing the VAT pubs pay on food and drink to that paid by supermarkets.” If Local Authorities add their voice to that of the hospitality sector, the pressure for change will certainly increase substantially.
Members of Rushmoor Borough Council voted in favour of the motion, with Cllr Gareth Lyon, who tabled the motion, saying: “It cannot be right that pubs should be penalised by the tax system and prevented from competing with supermarkets.
“Pubs play a central role in their communities and make an important economic and social contribution to our towns. As it stands supermarkets are able to cross-subsidise their drink sales as they do not pay VAT on many food items.
“This means that they can sell their alcohol at far lower prices than pubs can. There’s no wonder that pubs are struggling to compete.
“We are one of only two countries in Europe that does not have a lower tax rate for the hospitality industry. As a result our pubs will continue to suffer and jobs and investment will be lost.”
VAT cut campaigner, Jacques Borel (VAT Club JB), added: “It is great that members of Rushmoor Borough Council voted in favour of the motion.
“We fully appreciate the fact that Cllr Lyon has taken this stand and would urge other councils across the UK to take similar action in support of our campaign to reduce the level of VAT in the hospitality industry.”