Publicans on the North Yorkshire coast have cautiously welcomed a 20 per cent cut to business rates but are urging the government to implement a drastically needed reduction in VAT to help the hospitality sector survive.
Pub landlords on the Yorkshire Coast have welcomed a reduction in business rates but said more support was required.
The new Prime Minister Andy Burnham’s announcement that pubs, clubs and live music venues in England will get a 20 per cent cut in business rates from April has been welcomed with cautious optimism by publicans on the North Yorkshire coast.
However, landlords have urged Mr Burnham to consider a “drastically needed” cut to VAT rates.
Danny Smith, landlord at Scholar’s Bar, said:
“The 20 per cent reduction will be helpful to all businesses in the hospitality trade.
“However, it may be too little too late for many pubs that have already seen their businesses have to close through no fault of their own.”
Speaking to the Local Democracy Reporting Service (LDRS), he added:
“We drastically need a reduction in VAT now to give us a chance to survive.”
Alison Hume, the MP for Scarborough and Whitby, said:
“Our pubs, clubs, and live music venues are at the heart of community life in Scarborough and Whitby.
“They’re where people meet and make new friends, celebrate special occasions, enjoy live music and support local jobs.
“These businesses have faced enormous pressures in recent years, so this cut in business rates will make a real difference and provide owners with confidence.”
Labour has said further reforms to the business rates system will be brought forward as part of its wider plans to support high streets and local economies.
Andrea Allison and Mike Sadler, who previously ran Scarborough's Cask Inn and are now landlords at The Cambridge on Victoria Road, also highlighted the “crippling” impact of VAT.
Speaking to the LDRS, they said:
“We are currently at The Cambridge, which qualifies for business rate relief at zero per cent, but for us it’s the VAT that cripples the business.
“We should be at the same VAT that supermarkets currently get.”
Pubs are required to charge the standard 20 per cent VAT rate on all food and drinks. Supermarkets carry a zero per cent VAT rate on essentials but charge 20 per cent on alcohol and soft drinks.
Mr Burnham said:
“For too long, governments have stood by while cherished venues have disappeared from our local high streets. So today I am changing that.
“This government will back the businesses that people want to see in their communities. I said I would protect pubs and local high streets – the beating heart of our communities – and that’s what we will do.
“What we’re announcing today is just the start as we work to bring back hope across the country.”
Chancellor of the Exchequer, John Healey, said:
“Pubs, clubs and live music venues are at the heart of communities across the UK.
“They help make a place what we love. They bring people together, support local jobs and help keep high streets and town centres busy, which is why we will back them all the way.
“We are determined to bring hope back, give businesses the support they need and generate growth in every postcode.”
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