Publicans have said they worry they will be ‘overlooked’ in the Budget as pressure piles on the Chancellor to ease the burden on the hospitality sector.
Pub owner Beth Robinson, 41, who runs The Beeswing Inn in East Cowton, Yorkshire, said cuts to VAT would be welcome.
But she added she was ‘sceptical’ about how far a 5% cut would help pubs, as it might not be enough to pass savings on to customers and encourage them back to the boozer.
It comes after reports that Rachel Reeves is considering another 3.6% hike in alcohol duties this month.
But a new poll from Survation for the UK Spirits Alliance, seen by LBC, has revealed that nearly three in ten pubs (equivalent to around 11,000 venues across the UK) believe they may not survive the next 12 months if prices are hiked once again.
And 98% of landlords believe the Government is not supporting pubs.
Beth told Metro: ‘Big cuts to VAT would be well-received across the pub industry. Our overheads are huge – so reductions are what we’re looking for.
‘The problem is that a trip to the pub has become a luxury people can’t afford. But the cuts in VAT during Covid were the reason why so many of us survived through the pandemic.’
What pubs want is for Government to acknowledge that they are struggling and ‘show good faith’ with better financial support in the Budget, Beth said.
The past 12 months have been hard-hitting for The Beeswing Inn with the number of visits by regulars, and the amount they spend per trip, down – and pubs across the country are in the same boat, said Beth.
Steve Orme, 50, who owns The Red Lion in Shepperton, The Golden Grove in Chertsey and The Rose & Lion in Twickenham, believes that while a 5% slash to VAT would ‘massively help’, it is not enough.
The landlord, who has 11 years’ experience in the pub trade, told Metro: ‘The past 18 months have been more difficult than Covid – and the increase in Employers’ National Insurance this year kicked us all in the teeth.
‘Pub owners have shed staff. And the Government is surprised that unemployment is up but humans are too expensive to employ.’
Steve said pubs have had to adapt rapidly to change since the pandemic, with more now offering restaurant-quality food and activities in a bid to keep footfall up.
He added: ‘You can pick up four cans of beer in the supermarket, while at the pub it might cost you £6.50, £7, which is a lot of money.’
Increasing financial pressure on pubs, Steve said, will force owners to put up prices, meaning people will buy alcohol from shops to drink at home instead of going out for the ‘social experience’ of meeting mates for a couple of pints.
The Liberal Democrats last night urged the Chancellor to slash VAT by 5% for hospitality businesses to make pubs and restaurants more affordable.
Daisy Cooper, deputy leader of the Liberal Democrats, said: ‘People are working with their nose to the grindstone all month and have next to nothing left over after sky-high bills and spiralling food prices.
‘In years gone by people knew they could look forward to fish and chips with their family on a Friday night or a weekend trip to the cinema.
‘Now those small joys – the ones that make life worth living – are becoming an unaffordable luxury for too many.’
She added: ‘High street businesses have been hammered by the jobs tax and higher business rates bills, so it’s no wonder that so many treasured pubs, restaurants and cafes are boarding up their shopfronts, taking with them vital jobs and local community spaces.’
The British Beer and Pub Association (BBPA) held a protest outside Parliament today to fight against the tax burden on a pint.
On behalf of nearly 250,000 campaign supporters, the Chancellor is being warned that pubs are at tipping point, with one predicted to close every day this year.
A Treasury spokesperson told Metro: ‘Pubs, restaurants and cafes are vital to local communities.
‘That’s why we’re cutting the cost of licensing, lowering their business rates and helping more hospitality businesses offer pavement drinks and al fresco dining, on top of cutting alcohol duty on draught pints and capping Corporation Tax.’
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