MPs: Pubs need tax overhaul to thrive in post-pandemic recovery
A cross-party report has urged the government to overhaul the tax system in order to help the pub industry recover from its pandemic woes.
The All-Party Parliamentary Group on Pubs (Pubs APPG) heard from more than 15,000 publicans, consumers and sector bodies.
The group examined the impact of the Covid pandemic on pubs and what they need to “thrive after the pandemic.”
Within the ‘Raising the Bar’ report, it was concluded that the business rates regime must be reformed to “reduce the disproportionate burden faced by pubs” because of the use of the ‘fair maintainable trade’ rating methodology.
The group welcomed “recognition of the unique social and cultural contributions of pubs in the business rate measures set out in the autumn Budget.”
What’s more, the government was also recommended to extend the duration of the reduced VAT rate for hospitality beyond March 2022.
A current 12.5 per cent rate is due to be hiked to 20 per cent this spring, however the report said it was “clear that pubs trading levels will continue to be impacted by the pandemic long past this date.”
It was also recommended that the VAT reduction be extended to alcoholic drinks, to “ensure that wet-led pubs can also benefit from this measure.”
Pubs APPG chair and Labour MP for Warrington North Charlotte Nichols said pubs were “uniquely positioned to drive economic recovery from the pandemic,” with government support,
She added: “However, it’s clear that policymakers must take action to address the roadblocks to recovery identified in the Raising the Bar report, and I look forward to working with colleagues in Parliament to ensure pubs receive the support they need.”