Pub licensees across the UK are overwhelmingly in favour of the campaign to reduce the level of VAT on food and drink from 20 per cent to 5 per cent.
That is the finding of a major survey undertaken by independent market research agency Cardinal Research (which specialises in the licensed trade) on behalf of the VAT Club Jacques Borel.
A total of 1,003 licensees were interviewed for the survey, titled ‘Attitudes to VAT on food in pubs and restaurants versus supermarkets’.
96% in favour of campaigning
The survey highlighted that 96 per cent of the licensees say the pub and restaurant industry should campaign for the reduction, 94 per cent support the campaign by the VAT Club JB and 86 per cent agree that it’s unfair that supermarkets don’t pay VAT on food while pubs have to.
The survey took into account licensees in the south of England, the midlands, the north of England, Scotland, Wales and Northern Ireland, and represented a mix of free house, leased, tenanted, franchised and managed pubs.
The licensees included those from Punch, Enterprise, Star Pubs, Marston’s, Wetherspoon, Greene King, Spirit and Mitchells and Butler.
High support across all pub types
Support for a reduction in the level of VAT was consistently high across pub types.
Ninety eight per cent of leased publicans (including 100 per cent of Star and Marston’s, 99 per cent of Punch, 98 per cent of Enterprise Inns and 94 per cent of Greene King lessees) supported the cut.
In the managed sector 92 per cent of publicans supported a reduction in VAT, with support amongst free traders at 96 per cent.
The survey also highlighted that overall 94 per cent support the VAT Club campaign, with support high among all pub types (97 per cent among leaseholders, 90 per cent among pub managers and 93 per cent among free trade publicans.)
This was 97 per cent among leased publicans (including 100 per cent of Enterprise, Star and Marston’s) and 90 per cent in managed pubs (including 100 per cent of Wetherspoon and Marston’s and 88 per cent of Mitchells and Butler.
Supermarkets subsidise drinks
The survey also highlighted that 82 per cent of licensees agree that the supermarket VAT tax break on food helps supermarkets subsidise drinks and that 92 per cent of licensees agree that a VAT tax reduction on food would allow them to reduce prices and attract more customers.
It also showed that 64 per cent of licensees are aware that supermarkets do not pay VAT on their food sales, whilst 36 per cent are unaware of this VAT tax break.
Clear message to government
VAT Club JB chairman, Jacques Borel, said: “The findings of this important survey clearly emphasise the fact that licensees across the UK wholeheartedly back the vital campaign to reduce the level of VAT on food and drink in pubs and restaurants.
“It also highlights the fact that individual licensees back the VAT Club JB and believe that if the campaign is successful, it will have a positive effect on their business.
“The clear message to Government and individual MPs of all political parties is that the VAT campaign is of great importance to licensees and the pub industry.”