Plate tax a 'non-runner' hopes pub trade

The Association of London Government (ALG) has denied rumours it has asked the Government to introduce a "plate tax" to help local authorities raise funds.

The Sunday Express claimed that a submission from the ALG to the Lyons Inquiry into local government funding had called for a 6% surcharge to be added on all meals served in pubs and restaurants and 10% on takeaways.

The idea of a plate tax is a non-runner. We are already heavily burdened by VAT.​British Hospitality Association deputy chief executive Martin Couchman

The tabloid claimed that the surcharges could raise an extra £500m a year from pub and restaurant meals and £1bn from the takeaway market.

However ALG director of finance Steve Lord told the MA the proposal was "in no shape or form endorsed or supported by the ALG"​.

He said: "The Lyons Inquiry had asked if any authorities had pieces of research they could look at.​

"A couple of years ago we commissioned a piece of academic research to look at how a range of issues would affect London.

"Part of that was to consider measures used in other countries such as a bed tax and a tax on meals.

"Members never took a view on the findings. It was simply to find out whether they would be a serious runner."

British Hospitality Association deputy chief executive Martin Couchman added:

"The idea of a plate tax is a non-runner. We are already heavily burdened by VAT.​

"I hope the Lyons Inquiry comes to sensible conclusions rather than takes up these odds and ends taxes that will damage businesses."

The Lyons Inquiry closed for submissions today and is due to report in December.

There was no mention of a plate tax in the group's interim report.