“It’s the maths, stupid”!!! – The was a great article in this month’s CLH News from Wetherspoon chairman Tim Martin, highlighting the inequality in taxes that the hospitality industry currently pays and supermarkets.
Tim goes into great detail, highlighting disparity in wages rates and VAT and it is a very interesting article. I would urge you to read it.
The article highlights the fact that pubs have lost 50% of the drink sales to supermarkets over the last 30 years and are continuing to do so. The great disparity between pubs and supermarkets with VAT is particularly highlighted, , since supermarkets pay no VAT on any of their food sales and the hospitality sector pays 20% on their food sales supermarkets can heavily subsidise alcohol, which they do, with some totally ludicrous offers!
We also as a country are at a huge disadvantage, as we have often pointed out with our European counterparts who charge significantly less VAT for the hospitality sector than we do.
This will never change without pressure from the industry. Many of the larger organisations have been lobbying the government, however I truly believe that it is at “grass roots” level, the small independent businesses where the “power lies”.
Please register your support.
Get you customers to support it too! It is in their interests too, lower prices means more meals out, more visits to the pub and more overnight stays!
Editor of CLH News