Organised by veteran VAT cut campaigner Jacques Borel, Tax Equality Day was once again a great success. Here, H&C News presents some reactions from the companies supporting the Day.
Jacques Borel commented:
“The results for Tax Equality Day were outstanding.
“The substantial increase in customers on the day due to the price cut of 7.5% (with some members even making a 15% discount) was beyond our expectations.
“It proves that when you cut prices by 7.5% you then obtain an increase in customers of 10% to 20% which means that the VAT Club JB projection of creating 670,000 jobs thanks to a VAT cut from 20% to 5% is possibly a little conservative.
“This also proves that the £7.8bn investment of the Treasury in such an endeavour would almost certainly be covered by the extra income tax and national insurance generated, along with the substantial decrease in social security claims and a considerable increase of corporate tax.
“Tax Equality Day proves that it is probable the £7.8bn investment of the Treasury would be covered by these extra taxes in less than 3 years.”
JD Wetherspoon – sales up 11%
Tim Martin, chairman of JD Wetherspoon said: “Tax Equality Day was a very big success with sales up 11% on a like-for-like basis. We estimate that volumes rose by 20% on the day with a few items reduced to £1.99 such as a pint of Doom Bar. All of our customers and staff certainly now understand the point that is patently obvious – pubs would be able to compete with supermarkets if there was tax equality.”
Whiting and Hammond – looking forward to fighting on
Brian Whiting, founder of Whiting and Hammond, was interviewed of Radio Kent about the day. He said: “All the sites are reporting the same thing – generally customers don’t know that their bill has 20% VAT included in there! When they are informed, they agree that it’s wrong and think ‘Tax Equality Day’ is a great way of spreading the word. They enjoyed the discount and would welcome a reduction in the VAT. We didn’t get any negativity and are looking forward to fighting on.”
TGC – positive response from customers
Nigel Wright, TCG chief executive, said: “Sales on this year’s Tax Equality Day were broadly in line with last year’s, which were well ahead of the previous year, so we maintained the impact of reduced prices. Just as importantly, many of our sites reported a positive response from customers to the POS, leading to conversations with staff about how the current VAT rate impacts pubs and bars. It was a good opportunity to raise consumer awareness of this important issue and we’re pleased to have supported the day.”
Anglian Country Inns – the campaign is gathering momentum
James Nye, managing director of Anglian Country Inns, said: “Tax Equality Day went really well for us. The increase in trade more than covered the price reduction, supporting the idea that a cut in tax would boost trade. We gained extra trade from the marketing but also raised new awareness from surprised guests who were delighted to find their food and drink was more affordable. All I can ask is that if customers enjoyed it, they should let their MP know so that it can be a permanent feature. The local radio station called up for an interview on their drive time show, which was a great sign that the campaign is gathering momentum.”
Draft House – busier pubs than usual
Charlie McVeigh, founder of Draft House, said: “I have yet to determine if it was beneficial on a net basis but our marketing appeared to maybe generate busier pubs than usual – felt a little closer to a Thursday than a Wednesday which is good.”
Laine Pub Company – good exercise in awareness raising
Gavin George, chief executive of Laine Pub Company, said: “Tax Equality Day seems to have gone well and we had an increase in trade in a number of our sites. It was a good exercise in awareness raising, giving us the opportunity to explain the tax difference. We certainly got behind it in terms of social media and posters in our pubs.”
Cambscuisine – customers genuinely interested
Oliver Thain, founder of Cambscuisine, said: “Customers were genuinely interested in the disparity and most (75%) were unaware. They certainly enjoyed the 15% discount we gave them on the day and when highlighted that this could be a permanent fixture they got quite animated! It raised an issue that would otherwise go unnoticed and thus worth doing for that reason alone.”