VOTE: What do you want from the Spring Budget?
Earlier this month (February), mayors of the north called for an industry-wide VAT cut at the Night Time Economy Summit.
This followed the Night-Time Industries Association urging for a VAT cut for all businesses to save the collapse of the night-time economy.
The organisation said this would be the most effective tax reduction to provide relief and support to firms across the night-time economy and hospitality sectors.
Precarious position
Elsewhere, British Beer & Pub Association (BBPA) members wrote to the Chancellor, demanding action on VAT, business rates and beer duty.
The calls include the reintroduction of the 12.5% VAT rate for pubs, a long-term reformation of business rates alongside a 5% cut in beer duty.
The trade body said: “With more than 500 pubs having closed in 2023, it is clear the sector remains in a precarious position, while £1 in every £3 spent in a pub still goes to the taxman.
“This disproportionate tax burden continues to hold back a sector that creates more than 900,000 jobs and provides £26bn of value to the economy."
Future concerns
It added: “With the business rates multiplier for large businesses increasing in April and beer duty set to increase in August, pubs and brewers are concerns about the future of their businesses and have reached out to the Chancellor as a result.”
Fellow trade body UKHospitality (UKH) boss Kate Nicholls told The Morning Advertiser she has outlined to the Government “the cost of doing business is just too high” and urged for action to be taken.
UKH has three critical asks of the Government including a 3% cap on business rates increases, temporary changes to employer national insurance contributions and a 12.5% rate of VAT for hospitality, leisure and tourism.
