Licensee urges government to take food VAT action

A licensee is launching a bid to get the government to apply new laws on VAT that would help "most pubs in the country".

Helen Glover, lessee at Marston's pub the Belle Vue Inn at Padcastle in Cumbria, is urging the government to enforce a European directive that would particularly help food led businesses.

Back in March the European Commission agreed to allow member states to reduce VAT to as low as five per cent in a number of areas - including meals sold in pubs and restaurants.

And while the move has already been implemented in France, it has yet to be applied in the UK.

Glover, who makes 70 per cent of her profit from meals, said: "Making this change would help most people's businesses. France has done it and I think we should do the same.

"You have to help businesses get out of a recession and this would be a way of doing that. It is particularly important with VAT rates going back up to 17.5 per cent from January 1."

Helen's MP Tony Cunningham is backing her calls and has written to Exchequer Secretary to the Treasury Sarah McCarthy-Fry but has yet to receive a response.

CAMRA has also urged the government to introduce the measure and is keen for a similar ruling to be made on cask ale.

Iain Loe, CAMRA research and information manager, said: "It could be something that is announced in the pre-Budget report in November. Now that restaurants can no longer top up the minimum wage with tips they might want to put on more pressure.

"We certainly think this would be a help to the pub trade which is suffering and will not be helped by VAT going back up to 17.5 per cent."