Birmingham pubs have issued a 'heartbreaking' plea to the government, urging a reduction in VAT rates which they claim are 'cutting the oxygen off' for many businesses across the hospitality sector.
VAT disparity hits pubs hard
All food and drink sold in pubs is subject to 20 per cent VAT, while supermarkets pay zero VAT on food. The pub trade argues that this gives supermarkets financial leeway to sell alcohol at discounted prices, putting pubs at a severe disadvantage.
Last August, Labour West Midlands Mayor Richard Parker was asked by BirminghamLive if the government planned to address the VAT concern in the hospitality trade. He said at the time: 'We're all aware what the price of alcohol is at supermarkets. I'm not sure there's an appetite for the government to address those issues.'
The Station in Kings Heath speaks out
While the government might not have an appetite, it remains a cause of concern for pubs in Birmingham who called for a VAT rate reduction. The Station in Kings Heath said VAT rates were driving hospitality 'out of business' and called it a 'heartbreaking' time for the industry.
On social media, it posted: 'The number of businesses in hospitality struggling right now is truly heartbreaking. They are being squeezed in every direction. Making us pay 20 per cent on every sale is driving so many out of business.'
'This is on top of all the other taxes we have to pay. So many costs have risen from the core food and drink we buy from wholesalers, business rates, beer duty, employment charges, energy costs - it is the worst I've ever seen it.'
'I also think retail and the hair and beauty industry desperately need a VAT cut. We are cutting the oxygen off to so many businesses small and large.'
'I'm a great believer in paying taxes as it's taxes that build the fair and just society we all want to live in. However, they have to be fair and proportional. VAT at 20 per cent is neither fair nor proportional in the current economic landscape. It's a lazy tax that kills enterprise, jobs and hope for so many.'
'Young people are desperate for work but the government has made it so tough because so many hospitality businesses are closing or cutting back.'
'Please don't tell me we can't afford it, the money governments waste and burn every day is outrageous. They do this off the back of businesses across the country working so hard yet often just surviving.'
'If you love your local pub, or a coffee at your favourite café or a meal at your favourite restaurant, please help them and share this so we can spread the message. Less VAT more hope. Less VAT more jobs. Less VAT More beer. Thank you.'
The Dark Horse calls for 10% VAT
In Moseley, The Dark Horse delivered a similar message and called for a reduction in VAT to ten per cent. On social media, The Dark Horse posted: 'VAT's the problem.'
'Do you want to back your favourite venue, help your high street and support local jobs? Then sign our petition to lower the rate of VAT for hospitality to ten per cent.'
'Our pubs, restaurants, cafes, hotels, nightclubs and many more, are at the heart of our communities. They bring people together and bring life to our cities, towns and villages, but they're under huge pressure from rising costs.'
'In the UK, you pay one of the highest VAT rates in Europe. Twenty per cent extra in VAT for your pint, meal out or stay away. In France, Spain and Italy, it's ten per cent. In Germany? Seven per cent.'
'Our message to Government is simple. Let's stand together to say VAT at ten per cent is fair for hospitality.'
