Editor’s Viewpoint: A Pyrrhic Victory?

By Peter Adams, Editor, CLH News.

So, the government is set to U-turn on its catastrophic business rates policy for pubs. About time, some might say.

But before we break out the bunting, let’s take a moment to reflect on what this whole sorry saga tells us about those supposedly steering the ship.

First, credit where it’s due. The sector has done itself proud.
Since that November budget bombshell, the hospitality and on-trade industry has marshalled itself with remarkable unity and determination.

The campaign has been nothing short of exemplary, demonstrating what can be achieved when an industry speaks with one voice and refuses to be ignored.

But let’s not lose sight of the fundamental absurdity at the heart of this mess.

As John Webber, Head of Business Rates at Colliers, notes in our lead article: “It beggars’ belief that the government did not think about the consequences of its policies when it introduced them, when it set the multiplier levels and when it totally removed RHL from the sector. A proper impact study should have been carried out then.”

A proper impact study? Can you believe it? A fundamental change in the way business rates are calculated, leading to increases of up to 100% in some cases, and no impact study was conducted. This isn’t just poor governance; it’s reckless incompetence dressed up as policy.

And now we come to the relief itself. Pubs, yes. But what about the rest of the sector?

Imagine running a restaurant next door to a pub that serves food. The pub gets relief—rightly so—but you, as a restaurateur, are left to pay the going rate. Where’s the logic? Where’s the fairness?

I was heartened to see many high-profile pub operators and campaigners immediately highlight this inequity.

It speaks volumes about the character of our industry that even those who stand to benefit are calling out the unfairness to their fellow operators. It’s yet another example of how those in power simply do not know how to “read the room.”

The devil will be in the detail, but one should be thankful for small mercies, I suppose.

Here’s the thing, though. This government has inadvertently done something that we campaigners haven’t managed in the past decade or more.

They’ve shone a bright light on the sector’s plight.

The constant plundering by chancellor after chancellor is now plain for all to see.

The punitive levels of VAT we pay compared to our European counterparts are finally getting the attention they deserve.

This has been a longstanding issue, and as regular readers will know, we’ve campaigned tirelessly with sector organisations to have this tax on enjoyment and leisure reduced.

I still have my letter of rejection from then-Conservative Chancellor Rishi Sunak when we suggested a two-year trial following his own “Eat Out to Help Out” initiative.

A reduction in hospitality VAT would have a massive influence on the sector’s viability.

More than that, as I set out in my letter, it would create a much-needed “feel-good factor” and is overwhelmingly backed by the public. They benefit as much as operators. It would put something back into the country which is sorely lacking at the moment.

Cheer? Perhaps we’re not quite there yet. But the conversation has finally begun in earnest, and that, at least, is cause for cautious optimism.

I would encourage all our readers to follow us on X/Twitter @CLHNews and visit our website at www.catererlicensee.com to sign up for our twice weekly e-newsletter.

I can always be contacted at edit@catererlicensee.com